Investing in property can be extremely rewarding, but you need to know how you are going to do it. Would you buy a new car without first determining your price range, the make, model, colour or included features? The same applies to property investing. Research is required to determine how you will invest in property.
A key part of “the how” is knowing what you are good at. Why? When it comes to investing in property, knowing what you are good at will help you determine the strategy you should focus on.
With property, it is a case of “horses for courses”. You will find that you’ll be drawn to one or two particular strategies more than others. Take the time to make a plan of what best suits you, your personality and your available time and resources. Is it renovating? Is it developing? Is it making changes to a property to increase the value (such as strata titling)? Perhaps it is finding deals for other people?
Work out exactly what you are looking to achieve through investing in property:
- Are you looking for income? Or growth? Perhaps both (yes, this is possible!).
- What is your target area and who is your target market?
- What criteria do you look for (three bedroom houses, large parcels of land, blocks of units, student accommodation)?
- Who is going to rent your brand new purchase? Does it suit them?
- How long are you going to hold it for?
- What do you do if you can’t rent it for any length of time?
Focus on your strengths, make a plan and determine how to best achieve your property investing goals.