How to Become a Wise Property Investor
You’ve heard it all before. Whether it be over dinner with your family, around the water cooler with your work colleagues, in the newspaper, or while you’re having drinks with your friends – there are a million and one strategies and opinions regarding investment properties. You may hear comments like “I hear this capital city is booming at the moment” or “why would you even invest? You’d be a fool to not use the Government grants available for home-buyers right now!” Everyone seems to have a success story or a frightening tale that they can’t wait to share with you, regardless of their experience or education in the property sector.
We’re here to tell you that even though everybody seems to have their own two cents on property investing, always make sure you do your own research too. One of the first steps to finding a high performing investment property is to conduct your own market research and understand what makes a quality investment-grade property. You should also decide on the type of property that is best for you. You may be interested in finding a property that generates high rental returns in order to subsidise your own personal income. Or, you might be focussed on finding a property that has excellent capital growth every year so when it comes time to sell, you find yourself with a profitable return. Your perfect property will always depend on your personal financial goals – not the opinions of newspapers or those around you! Remember, headlines that read “property sector performs well – investors earn fantastic returns!” doesn’t sell as many papers as headlines like “property market crashes leaving investors shattered!”
We’ve created a list of three golden rules for property investing that the Atlas team has learned over our years of experience in the industry. We hope that these can be of use for those who are excited but uncertain to break into the property market.
Never stop educating yourself. At the end of the day, you need to trust your own research. Pick up a property investing book, listen to a podcast, or engage with professionals in the industry. Every individual you encounter will have their own opinion on property investing – this doesn’t mean that their viewpoint is necessarily well researched or supported by market data! If you want to trust your investment decision with a professional, engaging with a Buyer’s Agent such as the team at Atlas Property Group may be for you! We work with clients from all walks of life who are often time-poor, first time property buyers, or simply want an industry professional to source and acquire an investment-grade property for them!
Remain unemotional during your investing journey. Many investors make the mistake of letting their emotions play too much of a role when it comes to investing. An investment property should be informed by facts and data! All too often we have clients who want to buy their first investment property in their hometown, or close to somewhere that they know well. And who wouldn’t? It’s where they feel comfortable and they know a lot about the area. However, just because you feel like you know the area well, it doesn’t necessarily mean that the suburb is the best place to buy. We encourage all investors to try and remove all biases and preconceptions they may have as they begin their property investment. Wise investors will always trust the market data and buy in high-performing, highly desirable suburbs. It’s as simple as that!
Use your leverage and remain dedicated to your investment journey. Too often we see investors who have taken the tremendous step to break into the property market but haven’t continued to pursue their path to financial freedom. We wish we could tell you that one investment property will help you achieve the financial goals that you desire. However, this often isn’t the case and buying your first investment property certainly won’t be the final step on your journey. We always recommend to investors to continue hustling and building their property portfolio. This can be done through “leveraging” the equity in your first investment property in order to assist you in acquiring your second. According to 2018 ATO statistics, just over 2.2m Australians (or 8.8% of the population) have purchased an investment property, but only 19% of them (or 1.7% of the population) have successfully purchased their second. We recommend to our clients that they should always revise their first investment to ensure that it’s performing to standard and continue working towards building their property portfolios until they achieve the financial security that they desire.
At Atlas, we thrive on finding outstanding investment-grade properties for our clients. We have the experience and market data to help our clients acquire excellent properties that align with their personal financial goals. If you’re interested in learning more about our services, get in touch and make an appointment with us through the ‘Contact’ tab!