12 Tips From 12 Of the Most Popular Property Investors.

Whether you’re an experienced property investor or a complete beginner, it pays to listen to the advice of experts in the industry. Luckily, Australia has many popular and successful property investors, so we’ve researched their advice and today we’re going to share some of their top tips.

Have a plan.

Successful property investors are strategic in their investments. They don’t choose properties based on emotion or guesswork because they understand not every property will go up in value. Instead, they research the property market and pay close attention to the property prices and trends in the area they are considering for their investment.

Establish a property investment network.

Property investors need a good team behind them, including a solicitor, an accountant, a financial advisor and a finance broker. For new investors, the ability to tap into the knowledge of one or more experienced investors is likely to save you from expensive mistakes. Join a property network or consider working with a mentor.

Understand your numbers.

Did you know that 71% of property investors have only one property? When you don’t understand how the property’s cash flow will affect you, it’s difficult to find a lender if you want to make another investment. For example, how would a jump in interest rates affect your financial position? Find an advisor who can work through the numbers with you until you understand them.

Don’t start at the top.

Your property doesn’t have to be expensive to be worthwhile. Start with a property you can afford in an area which promises growth.

Have the property inspected before you purchase.

Spending a small amount on checking your property is sound may save you a large amount on repairs down the track.

Don’t rely on the rent to cover your expenses.

You need to be able to cover the expenses if your property is vacant for a time. This is unlikely if you’ve chosen the area well, but things sometimes go wrong for even the best tenants.

Pay close attention to the features of the property.

Think about what your prospective tenants will need such as a garage, proximity to schools, access to transport, or a low maintenance yard. Choose a property which will appeal to a broad market.

Find a reputable property manager.

Managing your property can be time-consuming so you need someone to handle the advertising and tenanting for you. Don’t be afraid to look around for someone who is well respected in the industry and who is also easy to talk to. You’re putting your financial security into their hands so make sure you’re working with someone you trust.

Claim your tax deductions.

A good accountant is a necessity and will make sure you take advantage of all the deductions you’re entitled to. You can claim costs like advertising, insurance and property management fees.

Negotiate.

Polish your negotiation skills. You can negotiate on price but also on the terms of sale. You may even be able to negotiate on your agent’s commission. Don’t just accept what you’re told but equally, don’t be unfair.

Know your data.

Before choosing a property or even a suburb to invest in, do some research. What rental yield can you expect from the average property? How long are properties on the market before they sell? How long are properties vacant before being tenanted? Look for an area where properties are selling quickly, with a waiting list for rentals and well-priced rent.

Be prepared to wait for your profits.

Property investing isn’t a get-rich-quick scheme. Because of the fact that values increase over time, when you’re designing your strategy, look at the long term.

There is money there to be made by investors who do their homework. Apply these strategies and build a solid property portfolio starting today.