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  • Writer's pictureKingsley Property

How To Invest in Property like a professional.

Understand the different types of investments:

There are many different types of investment properties, from residential properties to commercial buildings and land. It’s important to understand the differences between these types of investments and how they can fit into your overall strategy.



Understand your investment goals

Before buying an investment property, it’s crucial to have a clear understanding of your investment goals.

Are you looking for capital growth or income?

What type of property are you looking for?

When do you plan on selling?

Answering these questions will help you focus your search and choose properties that are more likely to achieve your desired


Get expert advice

Investing in property can be a complex process, so it’s important to get expert advice from experienced professionals. A local property sourcer can help you navigate the market and find properties that fit your investment criteria. Seek out the advice of other experts such as mortgage brokers, qualified financial advisors and accountants can also provide valuable insights and guidance.


Get finance pre-approval first:

Before viewing a potential investment property, it’s important to get finance pre-approval from a lender, whether this is a mortgage or bridging loan first. This will give you confidence that you can afford the property and avoid financial stress down the track. Also putting you in a better position once you’ve found a suitable property.


Develop an investment strategy / property goals:

Create a detailed investment strategy that takes into account your goals, the property market and your financial situation. This will help you make informed investment decisions, keep you on course and avoid common mistakes


Have realistic expectations:

Investing in property can be a great way to build wealth over time, but it’s important to have realistic expectations about the investment. Property values can go up and down, and there’s no guarantee that you will make a profit on your investment.


Research your market:

Before investing in any property, it’s important to have a good understanding of the market you’re buying into. Different markets will offer different opportunities and challenges, so it pays to do your homework before diving in.


Investigate rental demand in the area:

Before buying an investment property, it’s important to investigate rental demand in the area. This will help you assess whether there is a market for rental properties in the area and whether you are likely to be able to find tenants for your property.


Research the local area:

When assessing a property market, it’s important to consider the local economy. Strong economic conditions usually lead to strong property markets, also good schools, good transport links and amenities, are all important factors to research when considering investing in a particular area as these can affect property values and rents.


Do your due diligence:

Due diligence is critical when buying any property, but it’s especially important with investment properties. Thoroughly research the property, the market and any potential rental income before making an offer. Be sure to get a building inspection and comprehensive insurance cover as well.


Calculate potential returns on investment (ROI)

Use a property investment calculator to estimate the potential ROI of a particular property. This will help you assess whether an investment is likely to be profitable. investment property, ROI, rental income, capital growth.


Consider using a property sourcing company:

When buying an investment property, you may want to consider using the services of a property sourcer, A Sourcer is someone who specialises in finding and negotiating the purchase of properties on behalf of investors. They can save you time and effort in the property-buying process, and they may be able to get you a better deal on the property.


Have a contingency fund:

When investing in property, if you are new to property investing always use a 10% - 15% contingency fund, for unforeseen costs, a survey can only highlight issues that can be seen, it’s not until you start lifting floorboards and ripping out that you can really see what is needed. ’


Be prepared for the long term:

Investing in property is a long-term commitment, so be prepared for the implications of this before buying an investment property. Consider things like rental income, capital growth potential and maintenance costs when making your decision.



Summary:

Investing in property requires careful planning and strategy. This guide outlines essential steps to navigate the complex world of property investment successfully. From understanding different property types to setting investment goals, seeking expert advice, and conducting thorough research, these tips will help you make informed decisions. Key points include obtaining finance pre-approval, developing a solid investment strategy, maintaining realistic expectations, assessing rental demand and the local economy, performing due diligence, calculating potential ROI, considering property sourcing services, having a contingency fund, and acknowledging the long-term nature of property investment. By following these steps, you'll be better equipped to build a profitable and sustainable property portfolio.


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