A simple rule of thumb for investors is that you most often make your profits when you purchase the property, so buying at the right price becomes paramount. By focusing your research and time on a particular geographic locality you can develop an "investment comfort zone".
The first thing to do is to choose a geographic locality in which to concentrate your study of the market. You might choose an area of high capital growth, or maybe just your own neighbourhood. The best places for investment have good rents, low vacancy rates and are popular to live.
You will also want to choose an area you can afford to invest in. No point in looking at areas in which you cannot afford to buy.
Now that you have chosen your area the next thing is to develop your expertise in that same locale. Study price ranges, rental market data including vacancy factors, plans for potential infrastructure additions, planned developments, employment statistics and trends, school locations, transport, and local council matters. The latter includes town planning and zoning rules and regulations.
The next step is to acquire investment skills such as negotiating techniques, knowledge of finance, tax laws, and risk minimisation. All this will aid building an investment portfolio.
Finally is the ability to act when the right property arises, because with all the above, bargains will start to stand out to you.
If you have a question about real estate or would like assistance in locating a property, feel free to phone me.
Noel Thompson, Principal, Professionals Logan Lifestyles
Waterford 3299 7733 Browns Plains 3800 4000 Springwood 3808 5544
http://www.llr.com.au
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