5 Property Investment Tips For Beginners
Buying your first investment property is an exciting decision, but there's also plenty to learn about the market.
Here are five tips to keep in mind if you're thinking about investing in property.
1. Treat your investment as a business.
Be objective and have a long-term plan to make sure you maximise your return. This includes regular maintenance of the property and evaluation of the rent being charged.
2. Do your research.
It takes time to understand the property market and while much of property investing will require you to learn as you go, doing your research will help minimise any surprises that market trends may throw at you.
A common mistake of new investors is that they are either too impulsive or too cautious. While it is beneficial to buy at the right time of the property cycle, even experts can get it wrong. Thankfully, property is a type of investment that usually increases steadily in value.
4. Find an accountant who understands property.
Make sure you have the right professional who can advise you on your cash flow, capital gains tax and depreciation.
5. Avoid trying to self-manage.
While managing the property itself would seem simple, it's important not to overlook tasks relating to tenants, including filling a vacancy, collecting rent and bond administration. Forming a direct relationship with tenants can be rewarding until the difficult but necessary conversations come up. Using a property manager can help you with the business relationship involved.
If you want peace of mind when it comes to managing your investment, contact Coronis.