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Investment Property Advice That Works

by

Mac Daniel

One of the major factors you need to take into consideration before investing in property is to determine the investment risks. Investments and risks never really go hand in hand, although it has now become apparent that investors are now indivisible, and now have to be considered prior to purchasing investment property. There are factors that need to be considered when determining risk that include vacancy rates, property worth and value, interest rates on finance, property prospects for capital appreciation and tenant demographics. These risks and factors can influence both the financial institution and the investor and result in unforeseen extra costs.

Risks include landlord insurance, mortgage insurance and in some instances include income protection insurance. When evaluating these types of risks, you need to seek professional

investment property advice

from more than one person. The most important factor to remember is to think long term when investing in property as well as have a plan that you stick to. When to buy is not nearly as important as actually buying a property, which is a common trap that many investors fall into, as they wait for the property market to drop in order to purchase a bargain. There are many investors that wait for a fall in the market, or wait until the price hits rock bottom; meanwhile all they are doing is really missing out on opportunities that would grow their wealth and are missing out on tax savings. If you take a look at the figures produced by the Australian Bureau of Statistics, investors will notice that on average the prices of property have literally doubled every seven to ten years for the past five decades. If you have a reputable licensed property management service that you trust, you can follow their directions, as they will advice you when to buy and when not to buy property. From the day that you sign the agreement, they will manage the property for you no matter where the property is located. Bear in mind that the real estate market changes constantly and so should your assets constantly change in your portfolio of properties.

There is a far more to buying real estate than meets the eye. When investing in property you need to determine if the potential value is more important or if the perceived value or actual value is more important. You also need to consider the reasons why you are purchasing property, for a home or for an investment. Purchasing property is not about buying at the bottom and selling at the top. There are no quick get rich schemes, so do not allow anyone to pressure you into investing, always seek professional advice.

Mac Daniel is an author of numerous articles, among which finance and investments are within his reach of expertise. With over many years of experience, he shares his valueable knowledge about property investments and portfoliosproperty.com.au.

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