Choosing property as your investment can be a good idea if you know what to buy and what to do with it. Property business for anyone but not all of them can be successful in property investing. There are risks and challenges especially in the beginning. In property investing, there are different types of investors such as analytical, passive, and active investors. Each type has different tendency in running their investment. Being an active investor is better especially if you seek for professional advice from reliable consultant. However, the most important point in property investing is if you are in the market and taking action. Spending too long in analyzing or doing nothing at all won’t give you any benefit.
How to maximize your upside in buying property
Is you have been thinking about property investing, the right time to start taking action is maybe now. Many investors are confused to buy right or buy well. Buying right often focus on the quality for the property and not really influence by the value or price. Meanwhile buying well tend to focus on paying under the market value. So what is the best approach in buying property?
- It is recommended to buy property that would appeal to owner occupiers. It is likely for owner occupiers to buy similar properties by pushing up local real estate value.
- You can also choose to buy property below its intrinsic value instead of market value. To do this right, you will need to avoid new and off the plan properties. They tend to come at a more expensive rates.
- You can buy a property in an area that has a long history of strong capital growth. This type of area will be able to outperform the averages due to the demographics factor. Besides, this area is more desirable for owner occupiers to live in. the lifestyle will be more suitable to their liking. This area also has affordable lifestyle. Thus, they will be willing to pay even at a premium price.
- You may also consider buying a property with a high land to asset ratio. You don’t’ have to buy a property with a lot of land. However, you need to remember that land is also valuable asset to keep invest in.
- If you find a property with unique points then you might as well buy it. When a property has something that other properties don’t, the value can be increased. It is not easy to find a special property with affordable price. However, it is recommended not to skip the opportunity if you come across with this type of property when looking around.
- It is recommended to buy a property where you can manufacture capital growth through many ways such as renovation, redevelopment, refurbishment, etc. it is better than just to rely on the market to deliver capital growth. If you can get a property which can help you gain capital growth actively then you shouldn’t miss the chance.