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Top Tips for Property Investment28 Apr 2014
To many, investment can prove to be a minefield. Here are a few tips to help you navigate this tricky business.
#1 HYPE OUT, FACTS IN
As exciting as the buzz surrounding a new property may be, at the end of the day that’s all it is — buzz. Snap back into sensible mode and take a good look at the facts and figures.
Calculate the risk involved and analyse its potential for appreciation before anything else.
#2 IF THE PRICE IS RIGHT
The entry price of the property matters. Simply put, if its price is lower compared to surrounding properties, you will be taking on less of a risk and the potential for making profit becomes greater.
#3 BUY WITHIN YOUR MEANS
This may seem like common sense but many buyers often make the mistake of doling out more than they can afford on a property, which they steadfastly believe will reap rewards big enough to compensate and more in the future.
However, in these uncertain economic times, it’s still best to play safe and make a purchase on which you can actually pay the mortgage each month.
#4 DREAM TEAM
You don’t have to go it alone. And with professionals such as real estate agents, lawyers and home inspectors, why should you? A good real estate agent will set you up with the properties best suited to your needs and wants, as well as nab you a better mortgage.
Any kind of property investment is ultimately one of the biggest decisions you have to make, so getting sound advice from across the board is essential to cut down on first timer mistakes.
#5 TWO'S COMPANY, FOUR'S A PROFIT
That said, the property market’s uncertainty can still invite plenty of blunders, even if you are a seasoned investor. To cut your losses and cushion the blow of an investment gone sour, remember the old adage “never put all your eggs in one basket”. If you are able to, invest in not one but multiple properties.
#6 TERMS AND CONDITIONS DO APPLY
As tedious as it may be to read through all the lines in an agreement, one mustn’t forget that a property is always big money.
When you think of it that way, surely a day spent poring over the agreement is little trouble? Make sure you understand all the terms and conditions, and if you hit any snags, do not hesitate to ask.
After all, this is your money that you’re signing away on the dotted line. It is always better to be safe than sorry.
Check out some of the poshest new kids on the block in Gallery: Plush Property Picks.