How to find the right real estate for investment

Real estate properties continue to serve as versatile investment options for their ability to function as residences, short-term investments and long-term investments. In most investment categories (stocks, art, jewellery, bitcoin etc.), people are hoping to buy something that will appreciate, to sell it later for a sizeable profit. Buying an investment property is an excellent choice for earning extra income and building long-term wealth.

Intelligent investors don’t bet on mere appreciation, they follow a set of real estate investment strategies, designed for a definite success in the market.
Let’s look at the top three approaches:

1. Investing in Rental Properties

Rental properties are passive opportunities that give steady income flows. If you don’t want a property management company to eat into your rental income, you need to handle everything from writing an inviting rental listing, pricing the rent, tenant screening and security deposits to offering amenities, regular repairs and maintenance and even evictions.

Ask yourself: Are you ready to be a landlord?
If yes, then find rental properties in emerging neighbourhoods with high growth prospects and tax incentives. Amongst several possibilities, single-family rental homes are highly lucrative and rewarding.

2. Buying and Holding Properties

Here, you get the twin benefit of a recurring rental income and appreciation of the property in the long run. The whole idea is to regularly rehab the property just enough for rent, and then hold on to it till the right time to sell comes.
Remember: Don’t overindulge in renovations to increase the value of your property.

3. Fixing and Flipping Properties

Flipping properties is different from holding in any manner, but with one thing in common: renovating.

It is an active investment strategy that requires the immense participation of the investor. The underlying scheme is that you buy below-market-rate deals, rehab the place by carrying out high-quality work at a fair price and eventually sell it instead of holding on to it.
For this, set a budget and a timeline (expect to go over both) to maintain a positive cash flow.

Real Estate Investment in Australia

To find the best property to invest in, do detailed research on your own and don’t entirely rely on advisors. Educate yourself, get to know your market, join a local real estate investing group, know the current trends, forecast and plan for the future.
Start locally and then diversify your portfolio over a large geographical area to protect it against the volatility of the local market. Search outside your native place by leveraging online websites. Know your target ROI, choose your lender carefully and limit the debt.
When going about the process, be sure to have the guidance of a team of experts. Consider Bal Real Estate for all your real estate needs. We can find you the best rental properties for sale and properties on lease/rental agreements.

Contact our specialists today to schedule a consultation.