Exchange Property Investments

Knowing the basics on property investment

Do you know what a property investment company is, and what they do? Having a little knowledge about property investment Adelaide companies and how they may be able to help you will allow you to make an informed decision about what’s best for your personal circumstance.

Property Investment companies are generally companies that own and manage properties – buying and renting anything from large houses to small apartments. Other property investment companies help individuals to invest in property by taking the stress out of the entire process; from finding the properties to buy, to handling legal or tax issues and even managing the operations of the property.

Some property investment companies have a specific focus on overseas properties whereas others expertise will lie in the local market.

Leave it with the experts

For some people, learning about property and taking the time to search out investment locations can be an enjoyable project and a profitable past time.

Many people however prefer to leave it up to the experts – trusting that they have far more knowledge, expertise, and indeed the time to invest in finding the perfect investments.

They are also experts in digital marketing so it’s worth getting their advice on marketing your property as well.

Some of the benefits of using a Property Investment Company include:

• They generally have excellent contacts within the industry and are exposed and privy to important information often way ahead of other buyers.
  With a current knowledge of prices and the housing market, Property Investment Companies will be able to advise and ensure that you get the best price available and don’t pay over the odds.
• If you try to take on a purchase without a Property Investment Company, you may feel out of your depth with no safety net to fall back on. Find a company you trust and you can enjoy the benefits of a property investment with the minimal amount of stress.
• They generally take care of things like finding a company to do an Adelaide asbestos removal – you don’t want a house full of asbestos as this can lead to poor health down the track. That is why a good property investment company ensures you have the correct asbestos management in place.
• Many Property Investment companies offer a property management service where they will handle the running and upkeep of your investment once it’s been purchased. This means that you won’t be constantly on call as you would be if you were to become a traditional landlord and gives you far more flexibility to travel or simply concentrate on other areas of your life.
• Property Investment professionals like propertyroadsa.com.au offer workshops and other educational resources to help you make the right decisions for your situation.

Reduce the risks

Properties are likely to be your most valuable assets. Taking the decision to invest and potentially build up a portfolio of properties can be overwhelming. Sometimes it’s a good idea to buy near childcare centres in case you have kids. However with the right property investment company you’ll be able to place your trust in expert advisors who aim to make property investment as low risk as possible.

In an unpredictable economy, buying an investment property is an excellent way to invest your money – there’s a reason for the old saying – “safe as houses”. It’s important however that you don’t take any decisions lightly when it comes to spending large amounts of money on property. Utilise useful tools like the Property Investment Calculator and take the time to fully plan out your investment and avoid expensive and stressful mistakes.

Be Prepared

Don’t assume that the money is going to roll in straight away. Investments are generally profitable however they do take time and hard work. Make sure that you’re completely clear on exactly how much you have to invest and figure out a budget that will work for you. Do your research and find out what tax deductions you’re likely to be entitled to and factor these into your plans also.

You should also do a thorough check of the home before purchasing and ensure the house doesn’t need any Adelaide roof repairs!

Value is everything

The main purpose of an investment property is to make money. It’s therefore essential that you choose a property that is likely to increase in value – this could mean looking in an up and coming area, or it could simply mean buying the property at a good price.

You’ll also need to look at the potential rental income you can achieve from the property and factor this into the amount of money you expect to make. Do as much research as possible about the market and the current values of properties and which areas are most profitable.

Think Long Term

You need to view buying an investment property as a medium to long term investment. Don’t expect to make huge amounts of money immediately and consider this when working out how much you’ll be able to pay back in the early stages. It’s not worth investing beyond your means and leaving yourself open to financial struggle in the immediate future. There are always ‘hidden’ costs you have to remember also – including agent fees, insurance and land tax.

Make sure you get yourself a good criminal lawyers adelaide to ensure you don’t get ripped off!

DIY or hand it over?

The chances are that you won’t be living in your investment property – therefore you’ll need to make the decision whether you’re going to handle the day to day running of it (including finding tenants and managing them) or whether you want to hand this over to a property management company. Unless you’re up to date with the latest legal, tax and admin requirements, it can save you time and money to appoint a manager for your investment property.

As long as you’re as fully prepared as possible, investment properties can be an excellent and profitable option for investing your money. Wide research and careful planning are essential before you make any decisions so give yourself some time and you’ll be rewarded for it later.

 

Further reading: Australian Securities & Investment Commissions -Money Smart Property Investment Guide