A key step in adding property investments to your portfolio of assets is to clearly define your own property strategy. Having a property strategy upfront ensures that you’re making good sound decisions with your property investments rather than getting swept up in the roller coaster emotional ride that sometimes accompanies buying property. It will always be to your greatest advantage to have a plan and stick to it when buying off-the-plan property.
One aspect that can’t go unsaid about your property strategy is that it will almost certainly be unique to your circumstance. It is important that you go through this process so that you understand your requirements and from there you’re able to craft a strategy that is right for you. You need to remember that there’s no such thing as a “one size fits all” strategy for property investments.
The first step to establishing your property strategy is to identify your overall goals for your investment portfolio and to understand your long term strategy. Buying a property is a very significant investment for anyone and as seen over time, property is a great asset to have in a diverse portfolio. There are many factors you should consider: the balance of property versus more liquid assets, buying fewer more expensive property or spreading your property investments across a broader spectrum of less expensive properties and a wide range of other factors. Understanding this up front is the foundation of a solid property strategy.
Once you’ve thought about and worked out your goals, you need to start doing the basic market research. Primarily, you need to identify what type of property you’re looking to invest in and what locations will give you the best return long term for your money. Once you know for example that you’re looking at buying off-the-plan apartments in one of the capital cities, then you can start getting more granular in your requirements. You can begin to research what projects are under development, the amenities that tenants in those areas are looking for, proximity to public transport and even things like anticipated rental returns.
The final piece of construction your property strategy is to seek out assistance from property investment experts. These people work in this field every day and they understand the market intimately. If you already have a good idea about your goals and have done your market research then seeking assistance from an expert will give you access to insights into the current market from someone at the coalface while also having someone offer perspective to you about your property strategy.
If you’re not confident in putting your own property strategy together, then working with a property investment expert will certainly help you in this process. They can work through the finer detail of crafting a plan specifically for you, talk to you about the different markets you should consider and fast track much of your market research. Ironfish is one of Australia’s most respected property investment companies and are available to discuss your particular property investment needs.