Property Investment is a tough game, Here are some Do’s and Don’ts for those just starting out.
Location Location Location – If your looking at purchasing a property for investment purposes, the location is key to the success of that investment. Look for the current economic status of the area, is it up and coming or is it on the downturn, are there good schools nearby or good public facilities for the residents. With the Auckland housing market as stretched as it currently is, those areas in high demand will continue to hold their value whilst those in less desirable areas will begin to appreciate at prices as well.
Focus on the long term goal – When looking at property investment you’re entering a long term Game. If you want big wins quickly check out the casino. Property investment looks at the expected gains of the property over the next 10- 15 years, and will the risk of owning that property be smaller than the anticipated gain in the value of that property when it comes time to sell or develop. Those who are successful in property investment are those who play the long term game and play it right.
Don’t be aftermind to ask for advice – If you think there’s potential in a piece of land your looking at buying, ask for some advice from the experts and get a second opinion. No one got to the top of the property ladder without any help somewhere along the way. Professional investors are known for hiring the best experts they can throughout the entire process including accountants, lawyers, valuers, building inspectors, property managers and buyer’s agents. Asking for advice will pay off in the long term, and without it, you could be left with a property with no development potential and thus no returns on your investments.
Don’t let your emotions get in the way – Investing is like having a child with no emotional attachment what so ever. Many first-time investors fail to make a decision with no emotions involved in some form or another. Almost everyone and their grandson will have some form of ‘advice’ for you if you tell them your thinking about property investment when in reality they probably don’t know what on earth they are talking about. Just because you can see yourself living in a certain street or you splash out on the renovations dose, not grantee a return on the investment you’ve made.
The latest isn’t always the greatest – contrary to the marketing and propaganda you’ve seen about the newest development in your city being the next big thing, more often than not there wrong. Whether you’re being told to invest in the tiny home movement or try to make a quick buck by doing a reno and flip, these fads are not the most sustainable option when it comes to property investment. People who follow the fads tend to make a loss or get stuck with a property no one wants to buy. These fads tend to come and go and often by the time you get into it, that cycle or opportunity is about to come to an end.