Successful investment: Tips for buying real estate in Australia

By the resi financial blog team, 09 April 2014

Buting real estate in Australia

There are a lot of ways to earn money in this world. Finding a job you love and spending your days working towards retirement is one avenue that most Australians will undertake in their lives. However, another route to look into could be property investment. With some time and a bit of research, it could be possible to secure lucrative returns from building a property portfolio and playing the real estate market. 

Of course, there is an idea of property investors being wealthy people from the get-go, using their immense net worth to capitalise on real estate opportunities and further their own interests in the long term. But this isn't necessarily true. Nowadays, almost anyone can get into investment - provided they have the drive, patience and will to make it work. 

For example, more younger people are beginning to enter the investment game before even purchasing their own home. This is because the sooner you start, the sooner you'll be able to reap the rewards of your hard work. Property investment is a lifelong commitment - especially given the amount of time you may need to invest in order to achieve a decent return. 

If you're thinking seriously about entering the real estate market for investment property, here are some tips to help you cover your bases and ensure you make the most of any potential opportunities that arise. 

Never underestimate the value of comprehensive research

Before you even approach a home loan lender, the most important aspect of finding the right investment property for you and your family is to research all the markets you could potentially buy in. With the size of these investments and the sheer amount of time necessary to see results, you'll want to ensure the region you're looking into has the potential to be worthwhile. 

When researching, look into statistics like the median property price, the average rental yield and vacancy rates is a good place to start. Furthermore, looking into projected future population growth, infrastructure developments and the estimated increases in property value over the next five to 10 years will help you make the right decision. 

Avoid emotionally charged property purchases

Remember; you're buying this property as an investment, not for you and your family to make into a home. Therefore, it's important to look for features that will appeal to a wide range of people, rather than what you are personally looking for in a house. 

Approach the market with the mindset of a businessperson and speak to a wide range of experts about the pros and cons of each property as an investment. After all, with their knowledge and experience - as well as insight into the likes and dislikes of buyers/renters in the area - having a property professional on your side will help you make the most of your investment. 

Categories: Financial Services, Home Loans, Property Investment