Residential property has always been perceived as a relatively stable and safe investment class, having proved its ongoing resilience over decades through changing market cycles, including the Covid-19 pandemic and ensuing lockdowns and the severe global recession experienced in 2008/2009.
“From a broader perspective, if you’re looking to invest in property generally, then you will need to consider both your potential returns as well as the potential capital growth on your asset. Your strategy may be to buy, renovate and flip, or it may be simply to buy and hold either to live in or rent out for additional income and as an investment property.”
If renovating is preferred, always consider the ceiling price achieved for the area that you’re investing in, which is where an experienced and informed real estate agent can assist. “The last thing you want is to overcapitalise and then find it hard to sell. When renovating, try to complete the project within a few months so that you can flip quickly and aim to sell the home within six months – the quicker, the better to reduce holding costs.
“In my opinion, this strategy is far better than putting all your eggs into one, more lavish basket. Take your budget and spread it over a mix of properties rather than tying it up into a single property. If you want to minimise risk then property investing, like all investing, requires diversification.
Buying off-plan is also a good strategy as you can put down a deposit and as it takes a few years to take transfer, you can then enjoy the price escalations as the development matures, which means that the value of your unit appreciates at the same time. “If you have the means available to invest in more than five off-plan units, there are tax savings available, making the investments even more attractive.
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Source: City_Press - 🏆 7. / 72 Read more »