investment success
It is important to look at a number of important considerations when you are thinking of property investment.
Whether you’re looking to invest or buy a home to live in, there are a number of important factors to take into account when making any property purchase…
Foresight
Long-term investing requires the foresight to imagine what the world will look like (and how much property might cost) in the future. This is actually very difficult as it is hard to perfectly imagine the future. It is also a very challenging task to imagine properties potentially costing many multiples of their current value. To make the best purchase decisions possible, use different data tools and expert opinions to research predicted property prices in areas you’re considering buying into.
Supply & demand
When making long-term investment decisions you need to consider how this continued population growth can work to your benefit. Essentially, you want to invest in assets that have a limited supply with an ever-growing demand.
Location, location, location
Following on from supply and demand, location feeds into the same reasoning. For long-term property investment location is an extremely important consideration. You want to make sure that there are lots of factors that’ll continuously drive the rental demand and capital growth of your property. Such as proximity to public transport, education facilities, shopping, parks and upcoming infrastructure projects.
Buy & hold
Don’t wait to buy property, buy property and wait. One of the good old property investment sayings! Buy and hold is one of the simplest real estate investment strategies, but it does require significant patience.
Test of time
The construction quality of your investment becomes very important when making long-term investment decisions. If you invest in a property with poor construction you might run into lots of additional costs down the track for repairs and maintenance.
The cash flow dream
The great thing about long-term investing is that you lock in your purchase price when you buy the property but your rental income has the potential to grow every year with the market.
Use these six important factors when deciding on your next investment purchase and whether it fits in with your long-term buy and hold strategy.