Looking to buy an Adelaide investment property? Navigating the investment world can be an overwhelming experience, so our property experts have shared some valuable tips, including advice for planning, research and the importance of patience.
When it comes to property investment, there’s no shortage of information in the market – but you do need to make sure the information you’re turning to is correct. Mistakes can be expensive, so it’s important to have a think about why you’re wanting to buy an investment property in the first place and whether it suits your circumstances.
Property can be a ‘lumpy’ investment, meaning that once it’s set up, it’s difficult to change, so you want to make sure that you get it right the first time around. Our property experts have compiled some tips to make sure you come out on top of your next investment.
1. Listen to your brain, not your heart
A good property investor makes decisions by assessing the objective data, not just by a ‘gut feel.’ In other words, you’ll need to be able to break the tie between emotion and decision-making. Our emotions will always play a bias role towards our personal preferences, which may not always result in the best outcome. A good property investor will be able to identify when emotion is present and can look to a third party for an unbiased opinion.
Property investment is all about making money, plain and simple. It’s not an ego building exercise where you go out and build a 100+ property portfolio, as this may not be the best way to make money. We see a great deal of property investors who (unwisely) solely focus on the number of properties that they own instead of looking at their net worth and potential gearing risks, how much money each property is making and whether each property is performing.
2. Take the time to prepare and research
As a property investor, some of the decisions that you’ll make will truly be the biggest financial decisions of your life (no pressure!). Make sure that you’re prepared. Complete a feasibility checklist for each property, do your research and get the right advice. The best thing you can do is make sure that you not only plan for the best outcome, but also the worst.
3. Patience is a virtue
Nothing happens quickly in property investment, so be prepared to wait. If you’re impatient, you will likely end up making the wrong decisions, which will end up costing you both time and money. Be patient, wait it out. There will always be another opportunity around the corner.