You’ve bought your first home — or better yet, you’ve just finished paying off your first home mortgage. Congratulations! Now, you are heavy into your research on property investment tips for beginners as you have decided to expand your real estate portfolio.
This real estate guide is a good place to start! We’ve got you covered with our top 10 tips on property investment for beginners. Through this blog we hope to help you make informed decisions and set you on the path to investment property success.
Top 10 property investment tips for beginners
1. Know your target market
On top of our property investing tips list is getting acquainted with your property audience. When investing in a home rental, you need to understand who your potential tenants are and what they are looking for in a property.
This will help you to choose the right location, property type, and features to attract the right tenants.
2. Look for growth areas
Areas that are experiencing growth are more likely to see an increase in property values over time. Look for areas with good transport links, infrastructure, and amenities. These areas are more likely to attract tenants and see an increase in demand for property.
3. Hunt for properties with unique features
Properties with unique features are more likely to stand out from the crowd and attract tenants. Look for properties with features such as a view, a pool, or a large outdoor area. These features can help to increase the rental value of the property.
4. Get a building and pest inspection
A building and pest inspection is essential before purchasing any property. This will help you to identify any structural issues or pest problems that may be present. It will also give you an idea of any repairs or maintenance that may be required.
Download our Building and Pest Inspection Fact Sheet
5. Establish your goals
Before investing in property, it is important to establish your goals. Are you looking for long-term capital growth or short-term rental income? This will help you to choose the right property type and location to achieve your goals.
6. Avoid overcapitalising.
Overcapitalising is when you spend more on a property than it is worth. This can be a common property investing for beginners mistake. It is important to set a budget and stick to it. Avoid making unnecessary improvements or renovations that may not add value to the property.
7. Consider the condition of the property.
The condition of the property is an important factor to consider before making an investment. Look for properties that are in good condition and require minimal repairs or maintenance. This will help to reduce your ongoing costs and increase your rental income.
8. Get into the habit of saving
Investing in houses requires a significant amount of capital. It is important to get into the habit of saving and budgeting to achieve your investment goals. Consider setting up a savings plan or investment account to help you reach your goals.
9. Don’t buy with your heart
It can be easy to get emotionally attached to a property, but this can be a costly mistake. It is important to make investment decisions based on logic and research rather than emotions.
Buy with your head by considering the potential rental income and capital growth of the property before making a decision.
10. Work with professionals
And last but not least on our list of property investment tips is to work with professionals such as mortgage brokers, real estate agents, property managers, and financial advisors.
Property investment can be complex and time-consuming, and so you need to get all the expert help you can get to ensure the success of your investment. These professionals can provide valuable advice and support throughout the investment process.
Investing into property with ZEP Finance
Getting started in real estate without guidance could lead to making poor decisions and more losses than gains.
Let ZEP Finance help you get into real estate investing with ease and the least amount of stress possible. Don’t hesitate to get in touch with us by clicking the button below.
After studying business and finance at university, Zain initially expected to pursue a career in finance. However, his passion for property and the experience of buying his own home led him to mortgage broking. He began his mortgage brokering career in 2009 and founded ZEP Finance in 2010.
