Guide for Building a Successful Property Investment Portfolio: Part 1 – Tips for Getting Started

Often people find the most daunting part of building a successful property investment portfolio is acquiring their first investment property. However, with the Australian Real Estate market still thriving, and areas such as SE QLD predicted to have one of the best years on record, now is the perfect time to start building (or adding to) your Australian property investment portfolio.

What is a Property Investment Portfolio and Why is The First Property Purchase So Important?

 

Invest in Australian Real Estate

Build A Successful Property Investment Portfolio

A Property Investment Portfolio is basically a collection of Properties/Real Estate owned by a particular individual or company. Property Investors are a very large and diverse group of people, yet they ultimately all have the same goals when purchasing investment properties – to make a positive return on their financial investment. But each year, ambitious Property Investors in real estate markets all over the world are still losing money or finding themselves committed to ‘bad property deals’, purely based on bad decision making and/or poor property investment guidance.   It is extremely important for all first home buyers to have a great overall experience when purchasing their first property – whether it is being used as a primary residence or as investment property. A bad first property buying experience is a sure way for any person to be scared away from further developing what potentially could become a financially beneficial property investment portfolio worth quite a lot of money in the long-term.

Why You Should Be Investing in Real Estate/Property and Building a Property Investment Portfolio

 

Buy Australian Real Estate

Buy Australian Real Estate – Gold Coast, QLD

Buying Real Estate has always proven to be one of the most ‘time-tested’ and effective methods to increasing your wealth. It is also one of the most successful methods for building a secure retirement nest egg for the future well-being of you and your family. Investing in property or real estate has always been, still is and will always be regarded as one of the safest long-term investments a person can ever make with their money.   However, there are many different strategies which can be implemented and utilized when building a successful property investment portfolio. The specific objectives of a person wishing to invest their hard earned money into buying property may vary on a case-to-case basis. For example, some investors may simply want to buy a property and then rent it out straight away, while others may actually want to live at the premises while they renovate the property or prepare it for the next stage of that person’s investment strategy.

Helpful Checklist for Starting a Successful Property Investment Portfolio

Whatever your objectives for purchasing Australian property may be, the following checklist will definitely help those out there beginning their property investment journey – as well as those seeking to improve the status of their current property investment portfolio.

  1. Property Investment Checklist

    Property Investment Checklist

    Know Your Budget and Stay Within Your Means. Before investing money into real estate, it is vital you know your financial limitations because you need to make sure you have enough cash flow to sustain your property buying ambitions. Make sure you first establish a budget or a limit on what you can actually afford and talk to your financial lender before doing anything else.

  2. Establish Your Property Buying Goals. What are your intentions for buying property in the first place and what are your expectations for the return on your investment? For example, are you looking for fast capital growth OR are you wanting to hold the property long-term?
  3. Be Prepared for The Ongoing Costs of Owning a New Property. Make sure you have thoroughly accounted for every cost you may encounter after you have actually secured the acquisition of your first property. Things you may need to consider could be council rates, insurance and any other general maintenance or repairs you plan to make on the existing property.
  4. Always Try to Purchase Property in a High Growth Area. It’s always important to try and purchase property in a high growth area, where there is going to be a very strong demand for buying houses and rental accommodation. For example, buying a property which is closer to transport, schools, CBD’s, etc. will make it a more desirable property for people to live in.
  5. Take Advantage of Current Real Estate Market Trends and Conditions. For example, during the ‘boom periods’ it’s going to be much easier for property investors to renovate properties and then sell them for a quick profit. In the more slower/slump economic periods of a real estate market cycle, it could take many additional years to achieve the same outcome. It is extremely important to know and understand the buying/selling cycle of the local real estate market where you will be purchasing property – in order to maximize your own buying efforts and the return on your investment.
  6. Remove Your Emotions From The Entire Property Buying Process. It very important not to be too emotionally involved when making decisions throughout the entire investment property buying process. Try to remain focused only on the facts and statistics which indicate whether or not you are about to make a solid investment with your money. A buying or selling decision based on any type of emotional attachment to a property could see you lose money, or not fully capitalize on great investment opportunities.

Are You an Ambitious Property Investor Seeking to Purchase Australian Real Estate?

If you are interested in building a successful investment property portfolio, then you are definitely going to need expert advice. East Coast Buyers Agents are experienced Australian real estate professionals who can help you start, build and manage a financially successful investment portfolio of beautiful Australian properties. Click the following link to read more about Why You Should Use East Coast Buyers Agents when searching, acquiring and appraising Australian Real Estate.


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