The property market has had a boom in recent years, and while it can be unpredictable, many people want to invest. If you’re thinking of putting your money into property, here are some ways you can get into this type of investing.
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Get financial advice first
Before you go and snap up a lot of properties, you should get financial advice first. This will allow you to:
- Discuss whether property investments are right for you
- Talk about how you’ll buy and pay for upkeep of the properties
- Ensure you’re making wise financial decisions
- Decide on the best way to invest your money
Financial advisors aren’t just for the ultra-rich, they can be very helpful for those who want to invest and maximise their income.
Choose a fund instead
If you don’t want to be involved in day to day stuff, then you may want to look at options such as investing in self-managed super funds. By choosing SMSF loans, you can borrow money to invest in property, with the profits going directly to a retirement fund. There are also a number of other schemes that allow you to invest in property and potentially make good returns.
Check the property market in your area
There’s no use investing if the market is unstable in your area, so make sure there’s a market for what you want to do. There’s no point buying a load of places to rent if there’s already a glut of rental properties in the area, and if your town has a lot of historic homes, then people may not be looking to buy renovated properties. Make sure that your plan is feasible.
Plan for unmitigated circumstances
Even the most well prepared investor can’t plan for everything. Whether it’s a sudden collapse in the property market or issues such as tenants not paying their rent, you could find that your investment suddenly loses value. In these situations, you need to ensure you have a backup plan in place and aren’t reliant on income from your property, and should seek financial advice if needed.
Property can be a good long term investment if handled properly, but like any investment, returns aren’t guaranteed. You should make sure you have sought advice and done as much research as possible before you proceed, then be cautious when you are making transactions so that you can protect yourself as much as possible and keep your money safe.