Real estate makes more millionaires than any other asset classes, this is one of the reason why investing in property appeals to the masses. Through my years of being a real estate agent, developer and now buyer’s agent I have learnt that successful property investors are people that plan ahead and know all the pros and cons of investing before they purchase.
I always liked the saying ‘failing to plan is planning to fail’ and this rings true for property investing.
When advising my clients that are new investors we look at the type of investment that suits their life style. For example, negative or positive gearing, normal rental yields vs high rental yields, high growth property that is expensive or cheaper property with low capital growth and importantly the best area to buy in.
Other aspect that is out side of a buyer’s advocate’s area of expertise that is critically important is finance. Different types of loan products can give you different levels of security eg: interest only repayments vs interest and principle, redraw facilities at your disposal or using LMI insurance, minimising the risk of your pre-approval by removing or satisfy conditions.
Once deciding on all the above there are the hidden costs of purchasing that few consider during the planning phase. For example, stamp duties, land taxes, body corporates, legal fees, property maintenance and insurance (rental protection and building insurance) and finally choosing a good accountant.
For a more in depth look into the pros and cons of investing from a buyer advocates prospective check out the article: Investing In Property.
Buying your first home or investment can be a difficult process that many find over whelming, hiring a buyers agent can increase your chances of owning property portfolio that will help you achieve your financial goals sooner. For a consultation free meeting on getting into the property market contact us via email or call us on 1300 00 WISE.
Senior buyers agents at Wise Real Estate Advice.