Since the beginning of the 21st century, property value almost doubled in most of the major cities around the world. Investing in properties has been one of the most prosperous “jobs”, and all those who have done so are now basking in their long-term results. The shortage of housing in certain areas has already reached critical levels, and it is estimated that at least in the next 10 to 15 years, properties will continue to grow in price. If you are looking to get into the business, here are the essentials, as well as tips and tricks that will get you going and point you in the right direction.
If you have no clue what properties are, how they gain value or how that value grows over time or how gross rental yield is calculated, it is time that you get educated. You don’t want to end up making the wrong decision that could cost you tons of money. One advice you will get is to contact any professional property investment advisor, who will teach you the basics and get you into the business. There are plenty of people offering courses, you just have to find the one that is truly successful and that has something good to offer. Remember that in this business, financial advice could be worth more than the deal itself.
Learn the types of properties
As every new person in the business, in order to reach fame and riches, you have to start with the basics and work your way up the ladder. An important thing to memorize and understand at the very start is the type of property you can choose from and the mortgage rates for each of these. There are residential properties (normally used for housing), commercial properties (used for offices, stores and company headquarters), industrial properties (used for production and assembly), retail property (located in downtown or in close vicinity to shopping centers) and properties for mixed use (any building used for both commercial and residential purposes). Choosing the one you are going to invest in could be difficult, but if you look at the numbers, you can easily see that residential and mixed properties are the preferred choice for the majority of people. If you plan to fix and flip houses, you may need rehab loans to fund this investment.
Let’s talk about taxes
Another important essential you should get familiar with is taxes. Since Australia has special taxation system, the best and highly advised thing to do is consult with or contact one of the professional accounting and taxation services. Try and learn as many things as you can about the taxation system. You will be surprised by all the information you can get, along with the opportunities which they offer. And in the world where millions of dollars spin every year, information is worth more than gold.
Research the market
Every market has different demands, and the law of demand and offer applies everywhere the same. The best way to start and get into the business is to find a city where the demand for properties is high and start investing; however, another thing you can do is estimate which city or areas are going to develop soon, and by doing so, require constructions all over the place. These areas are future gold, and by investing in them now while the housing prices are low, you could end up earning your retirement in a couple of years. Remember that in this business, virtue is the most valued trait. It could take up to 10, maybe even 15 years before the property doubles or even triples in price, but if you’ve done your math properly, it is inevitable.
Play your cards right, learn the basics, and maybe this will become your dream job. Follow the footprints of those that have succeeded and remember to be patient.