Profiting from investments: Basics for first time buyers

By the resi financial blog team, 18 February 2014

Tips for first home buyers

There are a huge number of opportunities for property investment at the moment throughout Australia's real estate market. Following the Reserve Bank of Australia's (RBA) announcement that the official cash rate will remain 2.5 per cent for another month, interest rates are expected to remain low heading into the near future. 

Now could be the perfect time to consider building a property portfolio of your own in order to begin generating wealth and securing a slice of security for your future. However, sometimes it can be difficult for first time investors to know what they're looking for - especially with a wide variety of different property types and markets to investigate before making a decision. 

However, here are some tips to help you make the most of your first foray into property investment

Adequate Research

Before you begin look at properties, it's essential you begin researching the market in areas you're interested in. There is a wealth of information out there about the state of individual suburbs, cities and states - it's just a matter of looking into these matters in depth. 

For example, the auction clearance rates, median sale prices and overall rental yields for properties in the general area can give you a decent idea about your chances of securing property, how much you can expect to pay and what your weekly income will be, respectively. 

With this information in your hands, you'll be in a great position to make the best call possible about whether or not you want to try your chances in one market or move onto the next. 

Patience is a Virtue 

Property success doesn't happen overnight. You have to remember that real estate markets are a slow moving beast and need to be treated as such. Therefore, it could be months or years before you begin to see any real success from your investments. But if you stick with it and do the right research to begin with, it'll happen.  

Categories: Home Loans, Property Investment