The Do’s & Dont’s of Land Investment in Australia
The Do’s & Dont’s of Land Investment in Australia
Compared to many other investment vehicles, putting your money in land or homes is considered pretty safe and rewarding in the long run. Safety of your capital is a major redeeming factor in real-estate investment. On that note, let us understand the do’s and dont’s of making property investments in Australia.
- Have a definite objective
Investment in properties can be rewarding, particularly for those who look for residual income. Nevertheless, you need to have a clear cut vision of your goal regarding the investment. Your aim must take care of your current financial position as well. For instance, for an indebted individual, buying a property would not be a prudent approach.
- Research on the market.
There is no denying this conviction that the Australian real estate market offers a plethora of options to prospective buyers. Therefore, doing adequate research before making a final decision can be crucial
The Australian housing market had a tepid growth in the recent past. However, it is gaining momentum and according to recent data, there had been a significant decline in housing sales for two years. In turn, this has resulted in lower prices helping the demand curve to rise.
As per the recent statistics of the renowned website abs.gov.au, there was an incline @6.7% in the weighted average Residential Property Price Index in the last quarter and @ 16.8% in the last year.
- Have a good credit history
Although there is no quick fix to undo bad credit history, a prospective buyer must remain aware of the credit record before buying any property. Through these reports, you can come to know the hurdles you need to overcome before buying your dream home. You can acquire the reports from Equifax or Experianat, at absolutely no cost.
The credit report contains vital information such as your details, plus your defaults, along with credit applications and debt contracts.
- Follow a timeframe
As far as investment decisions in real estate are concerned, timing is of utmost importance because a decision made during an appropriate time can help you make substantial gains. On the other hand, procrastination could lead you to missed opportunities. Therefore if you have managed to shortlist a property, and it is within budget, there is no point delaying it further.
- Make arrangements to manage your property.
Many times our purpose while buying a house is purely an investment. And, we do not have any plan to live in that property. In such cases, our central focus should be devising a system that helps us to manage our property with tremendous ease.
- Consider getting insurance
There is no denying this conviction that many people consider insurance as an unnecessary expense, whereas insurance is a must-have product. In this contemporary epoch, we are prone to various unforeseen contingencies. Insurance is a product that helps us to reap the benefits of our investment in real estate, without much worry about the future.
- Make arrangements for certain expenses
Housing is an ongoing expense. Just arranging the funds for buying the house is not sufficient, and a buyer needs to take care of other expenses also. When we shift to our abode, we realize that some arrangements are not as per our needs. To alter them as per our requirements, we need substantial funds, and the funds should be readily available to enjoy the property in comfort.
- Do not buy property because of good home loan deals.
Never get lured by the home loan deals offered by various mortgage companies. Getting a home loan is easy, but paying the EMI can be an uphill task. In a nutshell, we should buy as per our need, not just because we are getting funds at a reasonable rate of interest.
- Do not make emotional decisions.
Since the investment in real estate is a massive capital expense, we need to be more practical while buying a home and must keep our emotions at bay.
Sometimes our emotions are high, and we decide in a jiffy and that may become disastrous in the longer run. The well-trained salespersons of various real-estate companies often leave no stone unturned to make the prospective buyer indulge in impulsive purchasing.
- Do not work without planning.
Unlike other products, housing as an investment requires immaculate planning. One should do necessary planning with determination, dedication and discipline. Just having a plan to buy a house along with a deadline is not significant. Our central focus must be on the careful implementation of the blueprint which we have drafted to buy the property. If we do not plan, there are chances of risking our investment.
- Do not shy away from investing in prominent destinations.
Many connoisseurs of real estate business express solidarity with the view that location is above all other factors while buying a property.
As a buyer, you should lay excessive focus on the placement of your prospective real estate purchase. Basic amenities should be in proximity to the chosen destination. Apart from this, connectivity to the rest of the places is of utmost importance.
- Do not hesitate from taking the opinion of professionals.
In this modern era, technology has made inroads in our lives. Due to this paradigm shift in the availability of information, we have access to a boatload of content. And, we often get confused by taking inputs from various sources. Thus, it is wise to take the opinion of seasoned experts in the real estate business who have heaps of knowledge and experience.
Investment in property generally does not happen overnight. Before you make the first move, ensure that your research is deep and focused. Consider your neighborhood, the present and future infrastructure, progress of the demand curve, and similar factors to aid your decision. To make sure that you are taking the right decision, consult a real estate agent in Australia for smooth land investment.