Investment secrets you need to know
If you’d had a crystal ball and could look into the future before you made your first property investment, would you have chosen differently? If your answer is ‘yes’, don’t despair. While you may not be able to find a reliable crystal ball, you can learn and profit from the secrets of property investors who have come before you.
Get a pre-purchase inspection
A pre-purchase inspection can be almost as good as a crystal ball: an inspection report can reveal problems that may arise in the future. A building inspection can cost as little as $300, but can be used as a bargaining chip that can reduce the cost of an investment by thousands of dollars. In the worst-case scenario, the inspection will warn you not to buy a property at any price.
Study the market
A market’s previous performance can often be an indicator of its future performance. Has it peaked in price or are prices still rising? Has it always performed well, with prices steadily rising? Australian Property Monitors (APM) will give you the low-down on properties throughout Australia. Pay a visit to Domain’s Price Guide page and sign up for our monthly newsletter. Stay abreast of the market and you can stay ahead of the market.
Asking rates for properties can be deceptive, but auction results can give you a clear indication of what properties are worth in any given area. High clearance rates are an indication that a suburb is in demand. The prices properties fetch at auction can give you a better idea of the real value of property in a given area than the signs outside real estate agents’ windows.
Diamonds in the rough
Those who flip houses for a living look for those diamonds in the rough: houses that don’t look like much, but can sparkle like jewels with just a few cosmetic improvements. It’s not unusual for a $15,000 investment in cosmetic renovations to lead to a $100,000 increase in a home’s value. Even a first-time investor can make a tidy profit if they know what to do with a fixer-upper.
Property investment can be a game of skill or a game of chance. Invest skilfully and you’re much more likely to win the game. Take a chance and your odds aren’t very good. With so many resources at your disposal, why take a chance?
Source: https://www.domain.com.auPosted by