Investing in property is a long-term commitment and you do want to know you’ve got it right. A good starting point is speaking to trusted friends or colleagues who have already gone through the process.
You can also look online. Independent property websites and magazines such as Your Investment Property magazine and Australian Property Investment have unbiased articles, webinars and podcasts explaining the process and different property investment strategies.
There are also companies offering free property investment seminars you can physically attend. However, while seminars and webinars run by developers and other companies can be good starting points, you may find they are trying to sell you something, so be very wary of signing anything and parting with money at these events.
The ‘investing in property’ section on the Government Money Smart website also has good independent advice on investing in property. In addition, it explains the warning signs to help you recognise dodgy investment seminars and how to avoid being ripped off.
Knowing where to buy
Access to local amenities, entertainment and public transport are some of the main points to consider when looking at areas of where to buy. Physically visiting a location at different times of the day will give you a genuine feel for the area and what is around, but it’s advisable to do a few more background checks.
- New developments
Check some of the local government websites. Many of these not only have details about council plans, developments and local building regulations but they will have profiles of the local communities. This can give you an indication on whether the area is on the rise; if it is property prices may be likely to grow because the area is becoming a desirable area to live in.
This will also help you in deciding on the type of property you need to consider. For instance, if the area includes a university, then there is likely to be a higher proportion of students looking for accommodation and you may want to look at something suited to students. If it is an older demographic, it might be advisable to look at ground floor units with easy access.
- Vacancy rates
Vacancy rates give an indication of what the demand for rental property is for an area. If the vacancy rates are high, there is little demand for rental property. The ideal situation for a property investor is to buy into an area with low vacancy rates, meaning there is a demand for rental property. Vacancy rates for an area can be found on websites such as Australian Property Monitors (APM).
- Property value trends
Finding out what the property trends are for an area will also give you an indication of whether an area is performing well or not. Websites such as RP Data or APM will give reports on property values in an area.
We’ve been helping people realise their financial dreams through property for over 40 years. If you’d like to know more about investing in property and our property management services, our talented and experienced team would love to share its knowledge with you.
We are one of Newcastle’s longest established real estate offices, so give us a call on 02 4954 8833, send us an email to firstname.lastname@example.org or pop into our Cardiff office for a chat or check out our Facebook page.