For most things requiring a great outcome, generally, a high level of planning is essential. When you consider that property is amongst the highest dollar value purchases for most people, it’s not something to take lightly. Whether you are starting or investing in another property, here’s our shortlist of essential considerations:
What is it you want to achieve?. Investment property is just one of many asset classes – but more a long term investment. If you are trying to build wealth over your lifetime, well researched and well-chosen properties have historically proven to be a sound investment.
Emotion vs investment. To be blunt, investing is about making money. It’s essential to keep the emotion out of your decision making. For example, that glamorous high-rise off the plan tower apartment with pool, gym, and amenities looks impressive. Still, its overall returns historically have generally not matched an inner city-established property.
Financing: Many investors will need support from their lending institute. Meet with your bank and discuss how they can help you. The discussion will open up ideas on the budget and type of property you can invest in.
The property shortlist. There are many property classes; here are a few to consider depending on your budget:
- Residential- house, apartment or flat
- Retail shops
- Special accommodation; like a caravan park or student housing
- Land banking for the long term family plan.
Professional services. See your tax accountant, solicitor and financial planner and ask for advice on the best investment structure for you. There are many possibilities, and your goal is to (legally) minimise tax and set up a structure for the long term.
At ela Property Advocates, we help you make good decisions. Call or meet us, and we will discuss the extensive list of property investment pros and cons for your consideration.