TIPS FOR MAKING A SAFE INVESTMENT PURCHASE
Category Buyers
Though technically in a recession, the economic climate should never deter buyers. Instead of moping about your economic prospects, you can choose to focus on yourself and ask what it is that you can do to increase your own personal performance despite the current economic environment. One of the easiest ways of achieving this is to invest in an asset that has proven to yield high returns across the ages.
Before the 20th Century, wealth was determined almost entirely by the number of properties in one’s portfolio. People have been investing in property for centuries. And, for centuries, millionaires have been made. Quite simply, property investment has and will always be the safest investment a person can make.
Though your rate of return might fluctuate depending on the economic and political environment, a calculated property investment will always return a profit. Even if you purchased in 1997 when interest rates were at 24%, and waited for the right moment to sell, you would have made a decent profit. It’s good to remember that, at the current 10% interest rate, we’re actually in a much better market than at earlier stages in our country’s history.
Below are the three ways to make sure you make a safe investment property purchase:
1) Study your suburb
If you’re serious about your finances and your future, then you need to make it your job to know what is happening in the area you’ve chosen to invest in. Avoid investing anywhere other than in the areas about which you are well informed.
2) Start Small
Small sectional titles without gardens to maintain will provide the greatest means of return. You want to keep your costs as low as possible because the lower the cost, the higher the return. That is why smaller properties give you a better yield. A good yield in the first year can be anything between 7-9%.
3) Choose Places of Evergreen Popularity
As long as you choose to invest in the correct location, you will always be able to find a tenant. Properties near to gyms, schools, hospitals and churches never remain vacant for long.
The truth is, it will always be a good time to invest in property. If you want to make sure you’re securing the safest investment, then involve a property expert who can help you identify the most profitable properties in your region.
Ask TEAMGavin for the best property investment advise..
Author: REMAX
