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Tips for successfully investing in property

11 Oct 13

Whether you're thinking about investing in property for the first time or adding to your extensive portfolio, it's important to make sure you're as well informed as possible before you sign any contracts and spend any money.

Follow these real estate tips to ensure you make the best decision.

Treat your investments like a business

Treating property investment like a business will ensure you are managing your money appropriately.

Buyers who do this can get high returns on their property from understanding the market and placing a strong emphasis on managing their property effectively.

Make sure you have the right type of finance, have systems in place to protect your assets and understand how tax will impact your purchase. It's a good idea to build a relationship with your advisor or lender, along with real estate agents.

Buy property that's attractive to tenants

It might sound obvious, but it's incredibly important to purchase buildings that tenants will want to rent in order to get a return on your investment. If your personal taste differs from most, or you're not sure about a neighbourhood's popularity, make sure you consult with others before you take the plunge.

Don't be afraid to ask your agent lots of questions about a property. They've undergone plenty of real estate training and should be able to provide advice on the best type of property for you.

Consider the market depth

When you're buying property, investigate how many sales occur in the area each year and how many sell within the price band of your property.

This information may be more useful that median prices, as it will tell you actual sales volumes by price group and provide a realistic indication of how saleable your house may be in the future.