The Australian real estate market has grown pretty huge since the 1960s and 70s! Ask any real estate agent and they will say that this is the best time to invest in a property or to sell one. That’s because the real estate market is in a constant phase of growth. Ups and downs have been witnessed in this industry but mostly it has seen an upward spiral growth.
Since investing in real estate involves a lot of money, most people put in their life’s savings into it and gain tremendously. But before you rush to make the next big purchase there are a lot of things that should be kept in mind for both, buying and selling. Sydney, one of the largest cities in Australia, has seen real estate market bloom like no other Australian city. You can easily invest into real estate in Potts Point or any other suburb of Sydney now.
Investing in real estate is a long term proposition, so naturally there are a few things that need to be kept in mind
You must have heard countless real estate agents say “location, location and location”, that’s because when investing in a property, it is really all about the location. What would you put your money in? House A is in a great school district, shares close proximity to hospitals, malls and the city centre, whereas House B is on the outskirts of the city and doesn’t share close proximity to schools, malls, hospitals and the city centre. Most people would happily choose A over B because of its location. So it is really all about the location!
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Return on Investment
Investing in real estate never produces overnight profits! The truth is that even in ever appreciating realty markets, it takes anywhere between five to ten years to earn a decent profit. If you are looking to make overnight gains, then investing in real estate is not for you. The longer you can keep the property, the more profit that you can generate from it.
There are a lot of financial factors that you need to consider before investing in a property. There was a time long ago when you could forget if the rent would cover your mortgage because you could make enough gains by selling it. But now times have changed and real estate has become a long term investment. So ensure that the rent that you may earn from your property would be enough to cover the mortgage, insurance, taxes, maintenance etc. or preferably should be more than this cost.
Renovation & Modifications
When looking for a property to invest in, you will come across various houses which would need minor repair and some which would require major repair. Adding a fresh coat of paint, repairing broken windows and doors or doing some landscaping is not going to cost you much but will definitely pay when you put the property up for rent or sale. But doing major repairs such as putting in a new roof or a new central heating and air conditioning unit is not going to pay you back. So it’s best to stay away from houses which require major repairs.
If you have decided to invest your hard earned money in real estate, keep these pointers in mind and contact a real estate agent. They can help you close the deal and can even help you with paper work.