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property-investment

5 Ways to Deal with Your Property Investment

While many investors hope to become wealthy by investing in real estate, only a handful of them will ever make it as far as making their first property investment in the sector. Once they have made their first investment, even fewer will be able to make it big in real estate investing.

It’s not possible to rely solely on the market to make you wealthy; you have to find the right investments on your own. You also have to hire the right people to help you.

Here are some tips on how you can best deal with property investment:

1. Head Over Matter

There are two main ways to invest in real estate: acquiring properties as your own or buying properties as an alternative to stocks and bonds. Buying stocks and bonds isn’t always the right choice for those who have little money to spare in their investment fund.

Buying a property for yourself can be risky, but when you buy it as an alternative to stocks and bonds, the risk is lessened since you can still turn it over for a profit. This, however, does not mean that you shouldn’t do your due diligence before you make your first property investment.

2. Assess the Market

There are many different types of commercial realty. Before you invest in properties, you need to assess the market first. Here, you’ll need to consider the following:

Supply and Demand

What is the number of properties that are currently available in the market? What are the types of properties that are in high demand? You need to know this information to make a suitable investment.

Sales and Rent

How are properties in the area doing? Are they selling? How much are they selling for now that there is a new listing? What kind of lease is the property getting, and how long is the lease?

3. Don’t Begin without a Sound Financial Plan

It would be best if you had a sound financial plan before making your first real estate investment. Are you investing because you want to or because you need to? If you already have your retirement fund, investing in real estate shouldn’t be a problem.

If you don’t want to invest in properties yet, you must ensure that your retirement fund is in order. Once that is secured, you can make your first real estate investment.

4. Diving in or Dithering

Be careful not to jump into the market too quickly. You need to know the market and how to assess the situation when you make your first investment. It can be challenging to make money in the real estate market without experience. Make sure that you do your homework and get to know the market well before you make your first investment.

5. Start Small

Don’t think you need to start an extensive real estate portfolio right away, especially if no one can help you. Start small by investing in just one property. Try to make it a profitable one and build on it later. You can use the money you earn from your first investment to buy another investment later.

Ready to Jump on the Property Ladder?

Being able to make your first property investment in the real estate market is a great way for some to start accumulating wealth in the market. You’ll have an excellent place to start, and you can build on it later. Just know your market, know your property, and have a sound financial plan before making your first investment. With a bit of hard work, you could be investing in real estate in no time.

Newcastle Financial Planning Group is your go-to for trusted financial advice in Newcastle and Hunter. Because everyone is different, our team of specialist financial advisers takes time to tailor our advice to our clients’ individual lives and goals. Our team is passionate about delivering the best possible outcome for you based on your needs. If you need property investment advisers, we’ve got you covered! Book a complimentary initial appointment with us today and let us know how we can help!

 

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.
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