Property is one of the best investments you can make, if you know what you are doing. With the market as it is right now, it’s a great time to buy an investment property and secure a house, townhouse or unit while prices are low.
We are seeing a lot of longer days on market and vendors are even dropping prices to try to get the home sold quickly. If you're a property investor, this is the perfect time to buy, as there is also a lot of choice of homes listed for sale.
A lot of potential investors sit around and wait for the market to be right for their terms, however if you wait too long, the market can change and you might miss out on some really good investments while you wait. Don’t wait for the market to change, if you are ready to buy an investment property - you are ready!
People have been asking me how the upcoming election is going to affect the property industry. If Labour gets in and abolishes negative gearing, a lot of property investors who use this strategy may end up having to sell their investments, as they won't be able to claim the loss on their tax anymore and they will loose a lot of money if they continue to hold onto a negatively geared property. If this happens, and investors put their properties up for sale, it will continue to be a buyer's market and you will be able to pick and choose from all the cheap properties listed for sale.
POSITIVELY GEARED PROPERTIES
If you purchase a property which needs a quick cosmetic renovation, you can actually benefit from the slump in the market. By purchasing a cheap property, renovating it, getting it re-valued and holding onto it and renting it out to pay off the mortgage, you will create a positively geared property that pays for itself.
If you have a property that is positively geared, when property prices rise again, you can sell the property and have a tidy profit in your back pocket.
property investment checklist
How do you know if you’re in a financial position to invest in property?
To begin your investment property journey, you need to do a number of things:
Download my property investment checklist to make sure you are prepared when it comes time to buy an investment property. If you have any questions regarding property investment, please comment below or give me a call on 0414 520 853.
Kelly Pack is a Real Estate Agent in Tarragindi who gives her time to the community and helps people sell, buy and lease their homes.