Property investment is not a get rich quick scheme; success takes time, research and ongoing management. It’s also an asset that’s familiar to Australians. It’s that familiarity that has arguably lead the Australian Securities and Investments Commission (ASIC) to note that one of the benefits of investing in property is that:
Unlike some complex investments you don’t need any specialised knowledge to invest in property. *
Now, it’s true that anyone can invest in property. Their success, however, will depend on their ability to assess, and draw insights from, a large amount of both quantitative and qualitative information. An additional 1% capital growth per annum (from 5% to 6%) on a $500,000 property over ten years would generate an additional $80,000 capital gain. Knowing when, where and what to invest in has a significant impact on your investment success.
ASIC also recommends investors buy in markets they’re familiar with:
Consider buying an investment property in an area you are familiar with as it will take you less time to research. Check recent sale prices in the area to give you an idea of what you can expect to pay for local properties. *
Given property is one of the most significant investments you’ll likely make, decisions shouldn’t be based on what takes ‘less time to research’. It’s an argument better left for buying a car or investing a small amount of money in shares – not for a long-term commitment like property.
Why it makes sense getting professional support
- There is no one rule book when it comes to property analysis. Given multiple competing forces, a price driver in one city need not necessarily apply to another. By limiting your opportunities to areas you’re ‘familiar with’, you potentially limit the performance of your property portfolio.
- Paralysis from over analysis can result in procrastination at the best of times. Add to that a plethora of often conflicting information and that plan of investing will likely be relegated to the bench.
- Owning a property requires more active management than owning shares; Tenancy, property management, maintenance and depreciation, with so many moving parts, having support can minimise the stresses of ownership.
- Access leading market research. We assess short and long-term trends and present them in jargon-free, easy to understand reports. Our independent and sourced capital city reports will give you the confidence you need to start or expand your portfolio.
- Access developments in multiple growth markets, leading developers, multiple asset types as well as development opportunities.
*Retrieved from https://www.moneysmart.gov.au/investing/property
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