For most people, investing in houses and/or units is easier to understand than other types of investing such as bonds, shares, ETFs or index funds.
Despite the perceived simplicity of it, there are still risks and that you need to consider before investing. This is where we can help.
When it comes to investing in real estate, not only do you need a thorough understanding of investment strategies and property, you also need knowledge of the property market that you wish to buy into.
In addition to this, you need to have a clear understanding of your current financial situation before developing a property investment plan. This can include:
- Loan repayments
- Lenders mortgage insurance
- Debt structures
- Tax savings
- Borrowing capacity
The Long-Term Nature of Property Investment
When investing in residential property it is important to maintain a long-term focus.
Residential property will go through extended periods of slow or no growth, then short periods of rapid growth. In these cycles, the value of the property will generally double. However, these cycles are unpredictable and can last anywhere between 7 to 20 years.
It is because of the unpredictability of these cycles it’s important to stay focused on the long term. By holding for the long term can mean, you’ll experience 3 or 4 of these cycles which can mean spectacular growth for your investment.
Your Property Investment Advisors
We are here to help you and your investment decisions.
When it comes to investing in property, we will evaluate whether your proposed property will fit with your financial goals. As a client, we’ll ensure you’ve set up the correct loan structures to ensure you’re maximising “good” debt and minimising “bad” debt.
Let us help you get clarity and direction when it comes to your property investment decisions!
