WHEN BUYING A HOME, ABOUT 90% OF YOUR PURCHASING DECISION WILL BE BASED ON EMOTION AND ONLY 10% ON LOGIC.

At the end of the day, while some emotion will always come into the equation, investing is all about the economics.

Property investors should always buy property based on analytical research.

• Will it provide the gains and returns you require?
• It is in the best location to attract quality tenants?
• Will it appeal to the owner occupier market that sustains property prices in the long term?

What type of property do you need to buy in order to meet your income goals?

You need to focus on both short and long term to ensure your investment decisions meetyour overall strategy.

Work backwards: Know what you want to achieve with regard to income, whether you want short-term yield or long-term capital growth – and how to best manage your cashflow as a smart investor. With a carefully blueprint for your property investment, you can end up exactly where you want to be.

Don’t rush into anything and do your research.

Property will not be a quick fix to your financial problems. The primary reason that bricks and mortar are a long-term prospect is that they lack the liquidity and the volatility of other assets classes, such as shares. It’s not all that easy to buy and sell property, your money will be tied up and it will rarely make you rich, especially not in the short-term. It takes time, effort, sacrifice and, often, a good deal of luck. It takes time to sell real estate and then there are the numerous costs involved, including capital gains tax, fees and legal costs.

Where some might see this as a shortcoming, it can be seen as a strength; because property is a proven commodity that we all need. It has the tried and tested ability to provide steady, long term gains through the power of compounding. In other words, you use the gains you make from one property to leverage into another property and then with the combined gains you make from those two properties, you buy more to add to your portfolio. Better still, you can use other people’s money (borrowed from the banks) to do so. No other commodity gives you the ability to do this so successfully.

LS can help you to make property investing a successful venture by assisting with the many hidden pitfalls in the process and with access to a wide range of expertise both domestically or internationally.

For an obligation free chat, call us today on  03 9416 2065 or send us a quick message and we will get back to you promptly.