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2014 – The year to invest in property?

Was one of your New Year’s resolutions to start investing in property?

The new year is a great time to review your financial goals, and if you’ve been talking about investing in property for a few years but haven’t yet taken the plunge, now is great time to take action.

With interest rates still at an all-time low, and continued signs that the Western Australian property market is strengthening, once you’ve established what your property goals are for 2014 it’s time to start planning.

There are a few different options for the type of property you can purchase, from building a brand new home, buying off the plan, or purchasing an established property.  There are pro’s and con’s to each option, but selecting what is most appropriate for you is an important first step.

Brett White, Managing Director of RE/MAX Extreme explains “With an investment property it is wise to look not only for long-term gain but also ease. The chances are you will buy a second, third and fourth property only if your early experiences in property investment are good”.

Some tips for purchasing an investment property:

• Seek Professional Advice – Don’t listen to friends or family members that are well intended but aren’t property investors themselves. Seek the advice of experienced professionals such as legal, accounting, finance and real estate experts.
• Do Some Research – Even if you have the help of a professional it is advisable to do your own research on areas and prices, and general self-education so that you understand property investment long-term.
• Know your Budget – Obtain a pre-approval for finance and stick to your budget.  A pre-approval will help improve the strength of any offer you put in.
• Buy with your Head and Not Your Heart – when buying an investment property it’s important to look at the opportunity for investment growth and rental return, and make your decisions based upon numbers rather than emotions.
• Good tenants rent good properties – when reviewing a property as a potential investment, ensure that you consider the location, proximity to transport, liveability, and potential maintenance required including gardens, as this will have an impact on ensuring good quality tenants can be readily found.
• Take Action – Property Investment is a long-term strategy, and with a downturn in the market only recently behind us, now is a great time to take the plunge.

For further information or to obtain a free comprehensive sales report on areas of interest to you, contact RE/MAX Extreme on 9400 6300 or sales@remaxextreme.com.au

written by:

McKinley Plowman