You can find thousands of articles on the internet about real estate investment in Australia. There’s no shortage of information, and a buyers agent is another source to take authentic information. However, there are still some mistakes that buyers make while purchasing their property.
Owning a house is a dream for millions of people; be it as a property investment or their very first home, and they work hard to reach closer to this goal. Knowing the basics of real estate investment can help you understand what you should and should not do as an investor. We have created this blog to help you understand some points that we have seen being ignored by investors.
Some investors tend to buy and sell properties like stocks. It might be difficult to understand for new inventors how real estate is different from other types of investments. It allows your capital to grow because the value of your property increases with time. The house you have bought today will be sold at a much higher price 20 years later. You cannot expect your property to make a huge profit if you don’t keep it for a long-term. Real estate investment is better suited for people who are willing to wait to get bigger profits and a more stable cash flow.
Houses vs. Apartments
Over the years, houses have always been the preferred property for Australians, and people are more inclined towards renting houses rather than living in apartments. Houses provide more returns, and you can charge higher rent for them. However, buying a house is also more expensive than purchasing an apartment. If you can afford to buy the right house in a good location, there is nothing better than that.
But if you don’t have enough money to purchase a house, buying an apartment is also a good investment option. They are also an affordable entry point in the market, so for new investors, an apartment might be an ideal choice.
Expenses the Investor has to bear
There are way too many expenses that investors don’t even think about before purchasing a property, and that turns out to be the problem later. Starting with the down payment, loan repayment, and loan service fee, these costs can include other expenses like land tax, council rates, maintenance of your property, insurance, repair, advertising for tenants, management fees, etc. Investors need to bear all these costs; hence, they must have enough expenses to own a property.
A buyer’s agent can help investors look for a property that is within your budget. It is essential to calculate the expenses beforehand so you plan your budget when you want to buy a property. Otherwise, you might find yourself in a tough situation and at a loss for money.
If you are looking for professional real estate agents to help you get the right property, reach out to New Property Specialists. They have years of experience in real estate and have great connections to help you invest in a good property.