While there are investment opportunities at most times, I’ve found that many of my successful investments have been made by going against the crowd and buying when most people are worried about the market and sitting on the sidelines.
Before you start looking at what to buy, you need to know what you can afford to buy.
Get a loan pre-approved and make sure you’ve set some funds aside for acquisition costs, holding costs and a financial buffer for a rainy day or rising interest rates.
It’s important to own your property in an entity that protects your assets and legally minimizes your tax.
Whether you buy in your own name, your super fund or a trust, you need to be aware of what it will mean for you and your family, now and in the future.
9. Who should you ask for help?
If you are the smartest person in the room, you are in the wrong room!
The real estate game is a team sport, requiring expert input and advice from a qualified accountant, a smart solicitor, a finance broker, an independent property strategist and a mentor who will help set you up for a win.
In general the answer is: No!
Not unless they’ve invested successfully through a number of property cycles.
This is because ‘the crowd’ is usually wrong. When everyone’s optimistic, people come out of the woodwork keen to give well-meaning advice; however, investors tend to be most optimistic at the peak of the cycle – when the risk is the greatest.
Just like they are pessimistic at times when the property market is flat and the risk of further downside is low.
As our real estate markets pick up and the cycle moves on, a whole new generation of investors will enjoy the prosperity property can bring.
If you ask the right questions you could be one of them.
Michael Yardney is a director of Metropole Property Strategists, who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his Property Update blog.
This article first appeared on Property Observer.
Michael Yardney is a director of Metropole Property Strategists, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is a best-selling author, one of Australia’s leading experts in wealth creation through property and writes the Property Update blog.
