Property investing is a solid strategy for building wealth over the long term. Like most things, gaining a good understanding of the key factors involved and proper planning is essential before taking the actual plunge.
Property investing goals
The first thing to consider in any real estate investing plan is to identify what goals you expect your strategy to achieve. These can be short term and long term goals or both.
If you don’t have clear goals in mind when you start property investing, it is like starting out on a road trip with no map…who knows where you will end up.
By clarifying what your intentions are this will enable you to consider the options available to you in the form of types of property to invest in.
For example, one of your short term goals may be to build up your capital base within two years to enable you to secure property to hold for long term capital growth. This could lead you to purchase a property that may be rundown so that you can do some quick renovations and sell it after a year to realize the equity created.
You could then roll this equity into your next project or investment. The point being that there are many types of property available and different opportunities; if you don’t have a plan and clear cut goals to begin with, it makes your choice of investment property extremely difficult to evaluate.
We have helped many of our clients take the first step into the world of property investing. If you are thinking about this at all, please give us a call as we would be happy to have a chat to you about your plans.