Because of fierce competition in the job market (at least for some key positions), firms are in a race to create the most attractive compensation packages possible. This trend consequently puts the most reliable workers in a position to leverage their dedication for higher pay. As the amount of cash earned by the employee reaches the point where it exceeds the cost of their basic needs and savings goals, they can start considering the possibility of becoming investors.
Another phenomenon that further increases the amount of money in the modern worker’s bank account is the relative ease of juggling at least two jobs. There are now jobs that hard-working professionals can take care of on the side because these tasks are more flexible or less complex than the day jobs that they keep.
When more money available, It’s possible to consider a range of investments including stocks, venture capital and property investment in Australia. The real estate industry is good for beginner investors because although it is full of ups and downs, it does not really lose relevance. There will always be someone out there who needs a place to live. If you need another example, the amazing success enjoyed by AirBnB and other similar firms is a good case to consider.
Discussed below are the items that should be on your checklist if you want to successfully invest in properties.
Be clear with your goals.
When ‘real estate’ is being talked about, many of us just think about townhouses with a pretty lawn in front of it. But that’s just a small part of the whole industry. There is a wide array of properties that can make use of your extra cash, including those with mineral deposits or those that may become more valuable because of natural beauty.
Because of this, there really is a need for you to reflect on what you want to achieve with your investment. Do you want it to become an income-generating ‘temporary storage’ for your cash while waiting for a better offer? Do you want to keep it for long and earn from rentals? These are just some of the questions that you should consider.
Be mindful of your target property’s location.
Real estate is practically immovable, so you need to make sure that the place is in a desirable location or at least en route to be one. If the target property is intended for use or disposal far into the future, it is best that you choose currently off-market locations that have the potential of becoming hot spots in the future. These are going to be a lot cheaper and there won’t be a lot of competition.
But now the big question: how to make sure that it will really pay off big in time? For this, you really need to do research. Look into the policies being cooked up by the local government units. Oftentimes, zone planning and urban expansions are closely linked to policy. Now, if you don’t have time for this, there are firms that specialize in these things. You can tap them so that you can benefit from their expertise.
Get a property manager.
Once the property has already been transferred to your name, the next thing to do is to market it. Marketing is a career that can be done on the side. However, it will be less stressful if you just let someone who’s focused and more skilled take care of it. Property management will require a lot of people interaction, which can be very taxing especially if you have other jobs to think about. Of course, you lose a bit of your profit to the property manager, but that can be a very worthy sacrifice.