Investing for beginners

Property investment in Australia is one way of creating wealth.

First, decide on your goals, for instance – generating a new income stream or creating long-term capital growth to help your retirement fund.

 Most residential properties with permanent tenancies generate somewhere between 2% & 5% rental yield in Australia.  

It pays to do your research when considering investing in residential property.

Location, age of the property, and floor plans are critical factors when purchasing an investment property.

Factors such as population growth, infrastructure, transport, schools, universities, and available employment opportunities affect vacancy rates and returns. Conversely, factors that can increase the supply of rental properties, such as releases of land and high-density housing, should be considered before purchasing.

Building a team of experts, a finance broker, accountant, conveyancer, and a property manager is essential to your success.

Using a property manager to research a market before purchasing will give you the edge. They are a wealth of information and can provide you with current market data. 

Buying a property as an investment usually involves securing tenants.

A property manager can provide you with a rental appraisal based on comparable properties. is a good resource for finding out demographics, vacancy rates, average rentals for the type of property, and supply and demand. If you are time-poor or own a property outside your area, it’s advisable to use a local property manager. Tasks such as securing a tenant, organising contractors for maintenance and repairs, and keeping thorough records of transactions are other benefits of using a property manager. In addition, it’s a tax deduction, and it will save you a lot of time and unwanted stress. 

Successful real estate investors plan they are savvy and conduct in-depth research they take calculated risks and don’t waiver from their goals. They forge relationships with a team of trusted people who become a valuable resource for advice before they start making conditional offers.

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