Making investments is one of the most effective ways to earn money other than starting a business. There are many ways to do this: mutual funds, stocks, bonds, or investing in a start-up with potential. But more and more people are also getting into real estate investment. That is, purchasing a property, renovating and managing it, and then putting it up for rent or sale.
For young people looking to grow their money, this is a viable way to make profit on the side. But before you start jumping on property investment, here is what you need to know about real estate investment.
Important things to note about buying an investment property
There are a lot of misconceptions that we need to clear out before you start your investment, here are some of them:
- Not just for high income people
You need to forget about this misconception, that only the rich are allowed to invest in real estate. If you have the money and a good credit standing so you can apply for loans, you can definitely get into home buying.
- Reduced risk
All investments have risks. It follows the overall performance of the market, so it is in its nature to carry risks. However, with real estate investment, you can manage and control your earnings. You can avail of insurance packages that can help protect your asset like natural calamities. You can also bind your tenants to an airtight contract. With other kinds of investments, this level of protection is not offered.
- Easier to study trends
All you need to do is study the market trends in the neighbourhood of your choice. If the land and property value is high, then you have chosen a profitable area. For this, you might want to discuss with a realtor experienced in the area so you can get updated trends in the real estate market and local know-how.
- Actively participate in the investment
The best part about investing in real estate is you can choose to be active in your asset. You can do renovations and repairs to level up its value. You can also choose who your tenants are going to be by vetting them yourself.
Why Australia is the best place to invest?
Now that you know what being a real estate investor entails, here are some reasons why you should be starting with properties within Australia.
- Steady investment performance
Australia has one of the most advanced economies, which means it is growing at a rate matched only by the richest countries in the world. It is expected that Australia’s GDP will grow a consistent 2.5% to 3%, making Australia an ideal investment location.
- Shrinking household number, growing population
In the next ten years, households in cities like Melbourne and Sydney will be reduced to 2.25 persons. But with the population rate growing faster and the declining household size, around an additional 620,000 households are expected by 2030 which is expected to push property prices to increase.
- Australian properties are viewed as low risk investment
It is easy to get lenders to give you 100% of the money you need to start investing in Australian property because of the promising capital growth. Certain postcodes are rated as some of the best properties with a high return of investment, which is why lenders are more than happy to allow a loan for Australian real estate. All you need to do is know the most lucrative postcodes.
So if you decide to check out some Australian properties right now, you can start looking at Alkimos real estate communities near Perth. Perth is a lovely country for those young individuals who like the beach and a laid back lifestyle. You can either build your dream home in Alkimos or have it rented out since it would be near beaches, an attraction to many tourist and Aussies alike.
There you have it. Just remember that all you need is a clear objective in your investments and a solid plan to do it right. So consult with the right people, take your time, and you will see growth in no time.