• Twitter
  • Facebook
Bunbury Real Estate
  • Home
  • Free Appraisals
    • Australind
    • Free Appraisal – Eaton
    • Bunbury
    • Dalyellup
    • Busselton
    • Capel
  • About Us
  • Rental Properties
    • Apartments
  • Buying or Selling
  • Property Management
  • Blog
  • Contact Us
  • Search
  • Menu Menu
Blog

Is There a Knack to Successful Property Investment?

November 26, 2021/in Buying, Investing, Property, Selling /by admin

two people holding sold sign

In a national property market that appears to defy all common sense, first-time investors are looking for some guidance before they take that first step. Residential property prices are at an all-time high, and interest rates are also at an all-time low. Understandably they are torn between the two extremes.

Do they take advantage of low interest rates and buy now at top prices? Do they wait to see if the market drops and take the risk that prices won’t climb higher, pricing them out of the market? What if they buy now and current market prices take a massive dive? They are then locked into a huge mortgage on a property that has lost significant value. How will that affect their overall financial position?

There is so much conflicting advice, and past property booms and busts have shown that even the experts can get it wrong. However, many successful investors believe that, just like any other important undertaking, planning is the secret to negotiating the property market and its quirks and variances.

Most investors already in the market started their investment plan by looking for a property that offered capital gain. The rental income paid most of the mortgage, and the expenses generated by the investment were claimed as a tax deduction. Their plan was to wait for the market to rise, thus creating equity. When there was enough equity in the property to cover another mortgage, they purchased another investment property.

The capital growth part of the plan allowed many people to build sizeable property portfolios, but for those looking further to significantly increase their cash flow the next step was to invest in commercial and industrial properties that offered lower capital growth but higher cash flow.

None of this is really a secret, but rather a considered strategy depending on the needs and goals of the individual investor. The most important part of the plan is to select the right type of property. This involves careful investigation of the properties on the market, and most importantly, their location. All this is time consuming, especially for the investor who is starting out and still needs to work to pay the bills.

This is why the best part of the plan for an investor is to find a real estate company whose sales representatives know the market. Here at Bunbury Real Estate, our professional sales agents have many years of experience at finding suitable properties, negotiating sales contracts, and assisting our long-term clients to build their property portfolios. Contact us if this could be you.

Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share on Tumblr
  • Share on Vk
  • Share on Reddit
  • Share by Mail

Are you moving home?

free checklist

Select a Property Manager

property manager

Get Your Free Appraisal

download free appraisal

Want to know how much your property would rent or sell for?

free appraisal

Why Choose Us?

click here

Latest News

  • Understanding Tenancy Options
  • Buying or Building a Home? Look Before You Leap
  • How to Improve the Presentation of a House that Won’t Sell
  • Why is Property Such a Popular Investment Choice?
  • Is There a Knack to Successful Property Investment?

Contact Us

Ray White Bunbury Real Estate
1/24 Stirling St
Bunbury WA 6230 Australia
08 9780 0707

Recent Posts

  • Understanding Tenancy Options
  • Buying or Building a Home? Look Before You Leap
  • How to Improve the Presentation of a House that Won’t Sell

Sitemap

Sitemap
Privacy Policy
News
© Copyright - Bunbury Real Estate - Web Design by Online Specialists
Not All Covid Consequences are Medical Why is Property Such a Popular Investment Choice?
Scroll to top