A Guide from Perth Specialists on Real Estate Investing
Property investment is an incredibly popular and highly effective way of growing your wealth. By securing a high growth asset and generating a consistent stream of income, Aussies can secure their financial freedom, whether in preparation for retirement or to enhance their existing quality of life.
If you’re looking to get started, this handy guide from Motivate Property Group in Perth is here to help cover the key essentials. This includes different types of investment properties, their key characteristics and benefits and what to consider when choosing between different investment options and different investment strategies.
Property Types
There are numerous different types of investment properties. These include residential properties like houses, apartments and townhouses that you can rent out to tenants and/or eventually sell for a profit. Retail stores, shopfronts, restaurant venues, warehouses and other commercial and industrial property can also attract a huge amount of rental income when positioned in a high demand area. Savvy and well-informed investors know how to pick the right type of property in the right area to maximise income streams as well as capital gains. It’s a skill that requires a lot of research along with expert guidance.
Property Characteristics
Every property offers particular characteristics that make it more appealing to different demographics of renters and buyers. This includes everything from location to size, features and access to key amenities. These factors have a big influence on purchase price as well as the potential profit. When investing in property, it’s essential to keep these factors in mind and stay focused on the goal of generating income through capital gains or rental income from tenants that exceed your expenses over the lifespan of the investment.
Benefits to Property Investment
For the shrewd investor who selects the right property, there are huge benefits, including consistent and gradually increasing income from rental payments along with steady growth in the value of the property. If you’ve already invested in stocks and bonds, investing in property represents an opportunity for diversification, ensuring you reduce your overall investment risk. You can also take advantage of tax deductions and claims, including negative gearing.
What to Consider
When investing in real estate, you should develop a long-term plan for what you want out of your investment, considering everything from your expected income to any potential renovations or upgrades you may want to incorporate into the property. Look at whether any federal, state or local laws and regulations may have an impact on your plans, from zoning to building permits.
Consulting with an experienced property investment specialist, such as the experts at Motivate Property Group, can help you in creating a plan suitable for your unique circumstances.
Investment Strategies
There are a number of investment strategies suitable for property investment. This can range from short-term flips, where you take a property, increase its value through upgrades or market-based growth and then sell it for a higher price than what you paid for it. Alternatively, longer term strategies focus on rental income, which is a great way to generate passive income through rent while still enjoying gradual increases to the overall value of the property.
Reach out an contact us online today to book your consultation with our specialists!