Investing in Brisbane real estate properties can be a daunting road to go down, as there are numerous factors to consider as you make a major financial decision that will have an impact on your future. Of course, the rewards are substantial, but getting started in the property game can naturally seem like a leap of faith. Thankfully, with these helpful beginner tips, property investment doesn’t have to feel like a game of luck or chance as there are tried and tested ways in increasing your chance of success in this market.
From understanding tax incentives to knowing your target demographic, here are some great tips for any budding property investors from an experienced executive rental property management company.
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Always do your research into the location you choose to invest in, as it could be the determining factor to your chances of success. Pay special consideration to factors such as population growth, accessibility to schools & employment, public transport, redevelopment plans, and proximity to facilities such as shopping centres and parks. Renters are also more likely to choose properties that reside in suburbs with low crime rates, and which offer plenty of open space for recreational and leisure activities.
It’s essential that you have an understanding of your location’s target demographic, so you can invest in the appropriate property to meet the needs of your renters and/or owner-occupants. Ask yourself questions and research to find the answers on whether your property will appeal more to families, couples, house shares, or older/younger residents?
For example, investing in a four-bedroom house near a university would be better marketed to a group of students as a house share than to a family of six who would prefer to live in the outer suburbs. These are all considerations you have to make when deciding on your target demographic.
This means either having the necessary skills and tools to manage any property repairs yourself or having the extra cash to have someone else come in and perform the tasks. It’s also important to set aside around 25% of your rental income to deal with emergency repairs in a timely manner. These unexpected costs may be from a natural disaster, bust pipes, or a fire. So, ensure you are well equipped and have the finances to manage all types of maintenance and upkeep.
Talk to your accountant about how you can take advantage of any tax incentives that relate to you as a residential real estate investor. This will hopefully increase your cashflow and allow you to meet your bottom line. Property investment isn’t a get rich quick scheme, so it’s important to wrap your head around how tax deductions and incentives can help give you a leg up in the property market.
Connecting with experienced professionals who have history with property investment is one of the most valuable ways you can set yourself up to avoid pitfalls and implement proven strategies to achieve success. It’s easy enough to find thriving networks and communities of property investors online through social media where you can bounce ideas, acquire advice, and gain the knowledge you need to move forward – both in Brisbane and around the world.
Other professionals you’ll need to become a profitable property investor include a solicitor, property broker, accountant, and strategists. By communicating with experienced property investors, you can be pointed towards potential candidates in these roles that will be ideal for you and your project.
Investing in residential and executive properties in Brisbane is a business that doesn’t always guarantee success, but by following these tips and planning rigorously, you’ll increase your chances of becoming a profitable property investor.
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