Why invest in real estate?
Investing in real estate is a great way to build wealth for retirement.
ABS figures show that in 2011-12, 50% of retiree couples retired on an income of less than $28,260 per year.
If you’re like me and would like to retire on a higher income than that, you need to start building your investment portfolio today. Because by the time you retire how can you be sure that the government will still provide you a pension at all?
Property investment mistakes to avoid
However, there are a few common mistakes that amateur investors frequently make that could put the equity in their home at risk.
1. Not doing the research
The purpose of an investment property is to make a return. The larger return the better. So to make sure you are maximising your potential for profit you need to make sure you are buying the right property, in the right area.
You want to be assured that you will be able to find tenants and that the house price will rise to make you a capital gains profit as well.
However, finding the right information is hard and there is often conflicting information online about where the best place to buy is.
That’s why I’ve compiled some of my best property investment tips into a completely free online guide which you can download and read at your leisure.
2. Choosing the wrong loan structure
By not setting up your finance correctly and buying the property in the right structure you may be risking the equity in your home. You need to maximise the tax advantages and follow specialist advice so you set everything up in the best possible way.
3. Not factoring in other costs
Unfortunately the price of the property isn’t the only cost there is. When buying an investment property you also need to factor in additional expenses that you may not have been aware of such as:
Interest for the construction period (If you are building a new home)
Agent’s fees on rental
Make sure you’ve planned for these extra costs in advance.
3. Trying to do it alone to save money
And the biggest mistake I always see is people trying to do it all alone to save money.
This usually ends up costing them money. If you are going to invest in a long-term asset like real estate you need to do it right the first time.
If you are looking to buy an investment property and need any assistance or have any questions contact me Barry Swain anytime on
0412 400 712 or send me an email at email@example.com.
I can help you get the finance you need, and I also work closely with property specialists, builders, solicitors and conveyancers who can help you with the entire process.
For more info about property investment click here.