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Real estate Investing for Non-Millionaires
When you think of a real estate investor, you might picture a tycoon in a suit or a real estate agent running a multi-million office. But today, more and more everyday people are getting into the market by building their own portfolio of rental and investment property in Victoria, Queensland, and other parts of Australia. Real estate investing is a great option for couples and families looking to plan ahead for their retirement or secure a second stream of income for themselves. Ironfish has been helping investors just like you for years. Interested? Here’s a few helpful tips to get started.
Finding the right property
This one seems like a no-brainier, right? Of course your success as an investor will depend on which Victorian investment property you purchase. But all too many people jump into the market without doing their homework.
To begin with, you should look for property that’s in a part of town that’s due for an upswing. Don’t invest in locations that are already trending and in high demand –these places have already experienced their pricing boom and you will be paying a premium for an apartment or a home. Instead, look for areas that will be the next big thing. Look for announcements about new infrastructure such as transportation services or new developments: these will drive up housing values in a few years. If you can buy before the demand starts, you stand to maximize your return on your investment.
Once you’ve found your location, look for investment properties that are already in rental-ready condition. Don’t purchase homes or apartments that need a lot of work just to be habitable. Properties that need serious renovation can wind up costing you more in repair work than you would have paid for a new place. And commercial properties such as office space or retail space can be very challenging to fill. Especially when you are just beginning your investment property journey, a turnkey apartment or a home can be the easiest and the safest place to get started.
Building your portfolio
But even an investment property in the heart of Victoria that’s ready to go still represents a risk if you can’t fill it right away or if the city experiences a dip in home values. That’s why Ironfish’s investment property office recommends to all our investors that you build a diverse and robust portfolio.
You’ll want to balance your portfolio of investment properties between some that will start paying out rental income right away with some that will appreciate more slowly over time. You should also look to invest in multiple cities. That way if the market is slow in one state, your properties in another part of the country will balance your overall portfolio.
To learn more about how to get started in real estate investing, speak to one of our experienced experts at a free seminar or in our Victoria investment property offices.