Tips for first-time investors: How to create a profitable portfolio

By the resi financial blog team, 20 January 2014

How do I make a profitable property portfolio

Property investment is a great way for Australians to help supplement their regular income and begin building a nest egg of wealth for their future. After all, with the strength of the market continuing to rise at the moment, now could be the perfect time for first-time investors.

However, it's essential that anyone approaching the market for the first time take their time to familiarise themselves with the common missteps and pitfalls that can hinder progress and stop the successful acquisition of real estate.

Lack of Market Research

When approaching the property market for the first time, it's essential to familiarise yourself with the ins and outs of the industry. Learning all the basics of the lingo and procedures will help you find the perfect property within your means.

Furthermore, investigating the data available about your area of interest will help you secure the best deal possible. Taking into account things like auction clearance rates, median sale prices, rental yields and the market demand in the region will help you to find a viable, profitable property.

Having Patience

Building a property portfolio is a combination of good research, intuition and patience. If it was easy to create successful portfolios, there would be a lot more investors across the nation. But it's important to remember that results can be slow coming in the real estate industry.

Having a clear idea about your personal short and long term property goals will help to put things in perspective and give you a tangible, measurable scale for success.

This can affect every aspect of your investment - from the type of property you choose to purchase to the home loan you select and the features you add to help make it as streamlined as possible.

Categories: Home Loans, Property Investment