Property Investment, any homeowner, or buyers’ main source to build wealth. Whether its by buying, leasing, renovating, or selling investment properties, the financial situation has improved for countless investors, creating a passive income, or setting themselves up for a comfortable retirement. It can be a challenge for a beginner in property investment, with multiple factors involved and understanding the property market there are many different strategies that you can take. It can be difficult to know where to start, investing in property is a big decision financially, so its important that you get it right from the beginning, contact us and speak with one of our team of experts and see how our valuation service can help you with your next property investment.
What is property investment
Property investment is an asset that generates income. It can be a rental, commercial or residential. In this guide, we will explore the basics of investing in properties and provide some tips on how to make the best decisions for your situation.
Types of property investments
There are many types of properties that can be purchased. commercial, residential, and rental property all fall under the umbrella term “property investment”. They each have their own unique advantages and disadvantages. The type you choose will depend on your personal situation such as where you want to live or how much capital available for an investment.
Residential: Residential real estate is the most popular form of property investments because it allows Australians to purchase a home which they can make money from after living in themselves (rental income).
Commercial: Commercial real estate is the process of purchasing properties that are used for commercial purposes such as shopping centres, office blocks and hotels. This area can be very profitable but it also comes with many risks so you should do your research before making any decisions about this form of property investment
Rental: The rental property option allows investors to purchase an already established dwelling with tenants living within them. This form of investment doesn’t come without its risks however if managed correctly can be very profitable long term because there are no management fees associated with this process but more importantly the tenant pays off most of the mortgage leaving plenty spare cash flow each month after paying down repayments!
How to find properties for sale
There are many different places to find properties for sale which include online as well as in the physical world. The best way depends on your personal circumstances and what you’re looking for but if it is an established dwelling then both would work equally well! There are basically two ways that people buy property: through a realtor or directly from private sellers (owner) who want to sell their home quickly and without paying expensive commission fees.
Property inspection checklist
There are many things to look for when inspecting a property especially if it is an older one which could indicate areas such as the roof, foundation and electrical systems may need some attention. The following list should be used as a general guideline only, but everyone’s personal circumstances vary greatly so make sure you know what would work best before making any purchase:
Roof – this includes checking everything from the guttering and downpipes all the way through to caulking and chimney stacks; Foundation – cracks or movement in walls usually indicates that there has been water penetration into lower levels of building; Electrical system – lighting not working properly, power points covered with tape instead of being replaced by new ones etc.; External appearance including condition of windows, doors and exterior paintwork etc.; Internal appearance – carpets, walls, ceiling; foundation crack; appliances (dishwasher not working); bathroom condition; heating system condition.
Once an investor has gone through all these checks, they should know whether the property is right for them or not. If it isn’t then no problem as there are many other homes available! However, if it is acceptable to purchase then make sure you get a home inspection done by your trusted building inspector who can give you more details about problems which were found during initial viewing/inspection before buying such real estate investment. This way any unexpected costs that may result from purchasing such properties will be avoided. Check out this article by Concreit, they listed the best platforms for non-accredited real estate investing
Renting out your property
If you have purchased a property on your own, then finding the right tenant is the next step as it would be essential for having someone to rent out such property. In order to find suitable tenants, an investor must know what questions should be asked and how they can convince people that their home will suit them best! Here are some tips:
• Search online – there are lots of rental websites which allow one to search properties based on criteria including price range, location etc.
• Screening – this includes checking references from previous landlords or employers; credit history (if applicable); criminal record check; background/employment verification; minimum income requirements etc.
• Tenant screening report – if these checks come back with no issues, then paying for a report which comes with detailed information on the tenant may be something to look into
• Home inspection – if an investor decides not to get tenants complete their own home inspections, then they could do it themselves or ask for references instead. Regardless of who does this task, make sure you know what would work best before making any decision!
As you can see, there are many different types of investment properties that an investor could go for however some will be more profitable than others while some carry higher risks. The most important thing when deciding what type of property investments would work best for your situation is being aware of how much capital you have available and where you are willing to live long term so these factors come into play with any decision made about which area would work best given all information at hand!
With over 25 years of industry experience within the state, Adam Webster is one of the top property valuers in Victoria. He has appeared as a guest lecturer at numerous universities in Melbourne and has run career development seminars. Adam has extensive knowledge of the Melbourne property market, gained through his years valuing commercial, industrial, and residential properties throughout the metro and greater suburban area.