The property market has been "hot" for the past few years and many people have made a lot of money investing in direct property. The question now… Is property still a good investment, considering the potential for increased interest rates and the roll on effect if property takes a dive or flattens for a period of time? The good news is that property is still a good investment – it always will be. The critical determinate as to whether you will make money from property investment is how you go about investing in property and that depends on what type of investor you are. Passive investors are those who have the income and equity required to invest, but don’t have the time or desire to become an expert in another field.
There two types, active and passive. Which type of investor are you? Do you have time to spare learning about investing in real estate and the money it takes to get into the market or does your job keep you pretty busy? Do you prefer to spend your spare time reading, researching and reviewing property or would you rather spend time with your family, traveling or enjoying personal pursuits?Active & passive investors
We have found that active investors are those that have income and equity plus the time it takes to spend looking for the right investment opportunity. They might also be in a position to add value to a particular property investment through further development or refurbishment. Active investors will spend the time needed to thoroughly research the right investment.
If you are a passive investor, the solution is to work with a buyers’ agent, investment advisor or real estate agent who understands property investment. You still have to do your homework to make sure that the service provider you choose is capable of giving you the advice you require, but it is far easier to spend some time finding the right service provider than sifting through the whole of Australia’ s property market to find the right investment property.Top Ten Tips for Passive Investors
Things to consider when finding the right partner to help you with your property investment decisions are:n How long have they been finding investment property for their clients?n What methodology do they have for researching the market to find value for you?
n Can they support you with other services such as finance, strategic advice on your total investment portfolio, insurance and risk management, property management and conveyancing?n What has been their past success for other clients?n Do they listen to and understand what you are trying to achieve by investing in property or are they just trying to sell you a project?n How many properties do they review before providing a short list for you?n How do they get paid?n Can they get you a better deal than if you had purchased direct?n Do they know the pitfalls of buying investment property and how can they help you avoid them?n Do they look Australia wide for the right investments or just in their own back yard? With the Australian property market running “hot” for sometime now it is becoming increasing more difficult to find value and even more important to use experts to help you invest appropriately. At Pulse Property, our team has been helping people find investment property for more than 13 years. As licensed financial planners – we understand investment as well as the real estate market. We look at the whole market across Australia and have a 65-point check list to rate and evaluate each property recommendation. You need to use a partner that has specific guidelines on internal rates of return, yields, capital growth and gearing ratios. A partner that provides you with detailed cash flows and can assist you with budgeting, insurance and risk management strategies that will give you the confidence and peace of mind to know that you can manage even if the market turns. These strategic buffers allow you to sail through a downturn. You need a partner with developer check lists and one who understands macro and micro economics about the Australian market and regional markets throughout each state. Companies such as Pulse Property have the buying power and can usually negotiate a better deal than you could by going direct. Whether you are an experienced property investor or just getting started you should consider speaking with property investment specialists such as Pulse Property. If you seek the advice of a specialist – property can always be a good investment.
