Many Australians are now waking up to the fact that superannuation may not be sufficient to maintain a high enough standard of living once they retire. Property investment is now a favourite strategy used by many savvy investors looking to shore up their resources for retirement.
In this article we will be covering four key strategies that investors should be mindful of in developing their future plans.
In the first place, researching the area in which you wish to purchase will be covered. Then, the importance of obtaining specialist advice will be discussed. Thirdly, maximising tax deductibility is highlighted as a vital area of importance and finally we will look at finding properties that match your buying profile.
Researching the area in which you wish to purchase. Whilst property is a popular investment vehicle, choosing the right one takes a lot of planning. In the first place you should make sure that the property has the potential to generate capital growth and is located in an area likely to produce this result. You will need to study property trends in the areas you are considering and examine graphical representations of property sales and prices over at least the last 10 years. Of course what has happened in the past is not necessarily a certain predictor of the future, but this knowledge will stand you in good stead in avoiding properties that do not satisfy this criteria. It is even more important to find independent 3rd party research to see what the potential is for emerging suburbs over a 5 year period. There is no use buying last years champion.
The importance of obtaining specialist advice. As good as any investment may be, there are never any guarantees. This adage also applies to the property market, so it is even more important for you to get the best possible advice. There are many specialist investment companies that take the worry out of your hands and do all the work for you in a professional and thorough manner. These companies are highly regulated by financial services legislation, so you can be assured of receiving impartial and well researched advice.
Establish your buying profile. When you are planning for your future, starting at an early age can be a big advantage. By establishing a proven strategy that suits your individual circumstances, you are in a position to embark on a long-term strategy of acquiring investment properties without the fear of having to ride out rising and falling markets. The correct strategy, worked out in consultation with professional advisers, will always take into account the ups and downs of the market and position you to avoid any potential problems.
In this article you have seen a quick summary of the important considerations you should think about before embarking on a property investment plan.
Direct Property Network (DPN) provides clients with an end-to-end property investment solution from selecting the right property, all the way through to settlement and beyond. We help clients establish affordable and profitable investments by researching and sourcing wholesale property.
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