Statistics show that 80% of Australians don't succeed in their first investment, discouraging them from becoming property investors. Many of these one-time investors failed to make it beyond their initial property investing venture because they went about it without observing a sound strategy.
Elements of Property Investing
Long term goals: Simply wanting to earn money is not enough reason to start investing. You need to lay down your long term goals whether it's to build your retirement nest, have funds to enjoy a particular lifestyle or leave a legacy for your children. Setting your goals will be the basis of your plan of action which includes a fixing a timeline and regular review of your progress.
Buying at the right price: A basic investment strategy involves buying low and selling high to earn the most profits from a property. Knowing at what price to buy requires extensive research and a good knowledge of the area.
Capital growth: Investing in properties with high appreciation values is a good strategy. When properties grow in value, you can use these as leverage to acquire more property investment, allowing you to build your portfolio quickly.
Opportunity to add value: Having an eye for properties that are diamonds in the rough and being able to visualize their future appearances is a property investing skill that you should have. Learn how to spot properties that can have a huge growth potential with some facelift. You can buy them at prices that are lower than their intrinsic values and spend a little on cosmetic changes that will boost rental income and property values.
Your financial capacity: Make sure that you have the funds to invest in the right type of property, either from extra cash lying around or from a loan facility. This is where you will need the help of a good mortgage broker to facilitate leverage.
Structure to save: Property investing is not a simple case of buying, holding and selling or renting. You should also know how to structure your portfolio to get the most of it with the help of a good accountant. There may be hidden opportunities to save on taxes that only an accountant can be aware of.
Ask for help: Those successful in property investment did not do it alone and sought the advice of professionals along the way. You should be prepared to ask for help and delegate to professionals like a buyer's agent, mortgage broker, accountant and a real estate consultant.
Kerry Finch writes about the latest trends in marketing and investing. Getting the basics right is the key to any venture that includes investing in property. Seize the opportunity now to learn more about property investing and get on the right path, from the very beginning http://www.jenniebrown.com.au/
Article Source: http://EzineArticles.com/?expert=Kerry_Finch