Building Wealth Through Investment Properties

What does it take to build wealth through investing in property? “Practical knowledge and a change of mind-set can make you wealthy”, says Joseph Chou, CEO of Ironfish, a leading company in the property investment industry.

Property is a safe investment haven especially in volatile markets. It is the perfect alternative to shares and managed funds. “The benefits of investing in property are many,” says Joseph, “cost contribution per week is minimal, the return is high AND the investment is very secure to mention just a few.”

To be successful, you must have a plan in mind. Here are 5 steps for a successful wealth creation plan through property investment:

1.         Start with a clear and definite objective – buying property will be one of the biggest investments you will make, so it is very important to think through the reason for purchase. For example, is your objective to invest for future capital gains? Or do you want a stable income, with positive cashflow? These factors will affect the areas and type of property you look at.

2.         Have a sound financial strategy – Realise that investing in property is usually a long-term strategy. The housing market is generally a 7-10 year cycle. Be aware of the type of loan used to purchase the property. For example, if the rent is not being paid, resulting in increased property agent costs, could you afford your home loan repayments?

3.         Take action – once you have decided on your objective and financial strategy – find the right property. Determine each area’s average rental yields, what infrastructure is in place and planned, and the property price growth that has been experienced and is expected.

4.         Follow-through with the plan – As you do your research you may find new information that you didn’t think about. Use that to your advantage, though keep your original plan in mind and make sure your investment property and portfolio is consistent with what you originally set out to achieve.

5.         Create a supporting environment around you – Read property-related articles, use reputable property research companies, search the internet, plus talk to people in the know, research the areas you are interested in buying within. Although it sounds daunting, information on property is easy to gather.

So, your next question will be, what are the best places to invest in Australia currently? “It is the right time to invest in Sydney while Gold Coast, Adelaide and Melbourne are experiencing excellent growth”. Some more practical tips:

n           Diversify your investment property mix 

n            Diversify your areas – at least 2 cities

n            Minimum 4 properties

n          Buy medium-range property

n          Know the top suburbs of each city

n          And most importantly, seek professional help from an established organization. So often, investors begin with the right strategy but lose focus in the middle. This is where a professional organization will help you to maintain the momentum.

Investing in property may be the best investment you will ever make, but it must be done properly. You may have heard of the saying “location, location, location”– though having a plan and doing the right research will go a long way to getting you the right investment.

Information Supplied by
            Ironfish
            Phone: +612 9439 6068
            Fax: +612 9439 604
            Email: info@ironfish.com.au

            Website: www.ironfish.com.au