Before we delve into the details of how to generate wealth from investment property, there are a few fundamental decisions to make first – for example, if you are going to grow an asset that harvests cash flow or that will give you growth capital wealth.
But which of the two is more ideal for a beginning investor?
The Director of The Property Bloke, Wayne Jessup, says a good cash flow for your first investment property can help mitigate some of the risk and serve as a strategic starting point.
"Your first property, especially if you are a reinvestor, cash flow should be a better option for you because, therefore, if the market recedes with capital growth, it hasn't taken everything away. your deposit, ”Jessup says.
"Because you always have that constant cash flow that allows you to either pay off the property if you need to and create more equity, or save more money for another deposit in order to add another property to your portfolio. "
To help first-time investors sift through the many avenues available to them for investing in the property market, Jessup sits down with Your Investment Property Editor-in-Chief Sarah Megginson to discuss the importance of having a goal when developing a long-term plan – which He notes that you always need to start with "having a little understanding [an] on real estate and home loans or investment loans ".
"You may have a plan or a roadmap and it's not for the rest of your life, but [it] could be a five year plan or a five year plan, which is basically a strategy on it. that you are going to get established in the next five years, ”says the real estate investor.
“So you know what type or property to buy to achieve that end goal,” adds Jessup.
It's also possible to extend an investment that's already geared toward high capital growth and inject positive cash flow into it – it all comes down to being "creative with what you have," Jessup says.
Here are some tips for beginners:
Do Your Research – not all real estate is created equal. Look for in-demand properties in central locations as they are more likely to gain in value
Vacancy rates are important – check with local property managers what the vacancy rates are so you don't end up with a property that is not in demand and remains empty
Have a cash reserve – if you are struggling financially and living week after week, now is not a good time to invest. Owning a property becomes very stressful if you don't have a reserve of cash to deal with emergencies
Contact Experts – if you are unsure of what to buy, where to buy, or how to invest profitably, contact an expert who has the leads on the board for advice.
Top suburbs:
The Pelvis
,
st peters
,
new city
,
coorparoo
,
Wentworthville
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