One of the hardest parts about property investing is knowing exactly what areas to invest in.
Most people will be familiar with a few markets.
Markets like an area they grew up in, lived in, worked in etc.
However, just because you ‘know the area’ doesn’t mean it’s a worthwhile or viable investment.
In most examples, the best areas to invest in are often the ones you don’t know about.
After all, you don’t know what you don’t know.
For example, most Australian investors like to focus on the two main capital cities, Sydney and Melbourne and understandably forget about all the other opportunities that are out there.
Why?
Because they ‘know’ Sydney or Melbourne.
However, like most investments, the more interest something has, the more competition it will generate which means that there will be more demand and ultimately, attract a much higher price.
Sometimes much more than it’s actually worth.
Overhyped markets help to inflate prices.
Does ‘the bubble’ sound familiar?
This is where all your research will come into play and help you even further.
It’s important to familiarise yourself with all the basics first.
These include some things like;
The financing – type and size of deposit, most suitable loan, applications and approvals
The costs – transfer duties, legals, moving costs, other expenses
The professionals – agents, solicitors / conveyancers, brokers / lenders, accountants
The choice – type of property, area
The process – what’s involved, what’s required, timing
Then there’s the finer, more in-depth details that may affect your area or property choice decision.
These include some things like;
The governing bodies and authorities – Planned / proposed changes
The strata – Governing bodies for strata titled properties
The atmosphere – Neighbours, businesses, industries and organisations near you that may affect the property and area in one way or another
The good news is that the bulk of information can be found online.
You just need to know where to look to source the information that you need.
However, some finer details are best left to professionals to organise and handle for you.
As each area and property is different, there is no one size fits all answer.
By aligning yourself with people and businesses that really know their stuff and can answer most, if not all, of your questions should give you a good indication for who’s services you can trust and benefit from using the most.
This is where building the right team with the right professionals is one of your best options for property investment.
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
