Investing in property can be a lucrative investment opportunity when done right, but property investment often also involves plenty of legal red tape to cut through, not to mention the initial investment cost.

First Steps

• Research: Before you start splashing the cash on any investments you must perform detailed research on whatever you are going to invest in. For property investment reading stories about people who have invested in property previously will provide you with tips and advice to help you with your property journey.  
• Connect With People Who Have Already Started Their Property Investing Journey: Speaking with people who have experience investing in property can be a good way to obtain valuable information before investing. Such information can help you save money and time when it comes to investing in property.  
• Research The Different Property Investment Options: By researching the different property investment options available to you will be able to find the best investment option for you. 

Buy Houses To Fix Up

If you have the home renovation skills to buy rundown houses that require renovation, fixing them up and selling them can leave you with significant profits in some cases. But to do this effectively and cost-efficiently you must be confident in your home renovation skills. Ideally, you should have or have had a job that teaches you such skills so that you become proficient in them.

Even if you had all the relevant technical skills buying a rundown house to renovate and sell can still seem like a risky investment, which is why you should seek out people who have done it themselves before. You can ask them any questions you may have and have them explain any costly mistakes they have made throughout their home renovation journey, this can help reduce the chances you will make the same costly mistakes yourself. You may also want to split the burden for the first time with another person, where you each pay for half of the cost of the house and the renovation costs. This of course will mean that you will split half the profits with your business partner, but you will have also gained valuable experience that you can use to buy and sell houses on your own in the future for greater personal profit. 

With every investment, there is the risk that things may not work out to plan and property investment is no different. You may buy a property and underestimate how much it will cost to renovate it, meaning when it comes to selling the property you may make less profit than you thought you would have; worst case scenario you may make a loss on the investment. But the bright side of that is the fact it can act as a learning experience for you to improve upon in the future as long as you still have enough money to make another investment in the future. 

Read: Mastering Smsf Trading: A Comprehensive Guide For Aussies

Buy Houses To Rent

Another way to invest in property is to buy a house to rent it out, which can provide the landlord with a consistent healthy return on their investment. When you are considering buying to rent it is important to check the average rent in your local area of similar-sized properties with the same amount of bedrooms; this way you can get a good idea of how much you can rent out properties in particular areas. You may decide that buying houses in certain areas may be too expensive and provide you with too little return on your investment 

Whilst renting property that you own can be a lucrative form of passive income there are also a lot of things that landlords need to consider, such as there being a lot of legislative red tape when it comes to buying to rent properties, so it is important that you fully understand all of the costs and expectations of you as a landlord; following these rules to the letter will mean that you won’t be fined or else find yourself foul of the law. Another thing to consider is the fact that your property will not be occupied 100% of the time, there will be times when your rented property is unoccupied.

By working with real estate management management companies you can often find new tenants faster and allow them to take responsibility for many of the day-to-day operations of your rented property. Of the most helpful services provided by a property management company collecting rent, attending to repairs and handling tenant complaints are probably the most useful to landlords.

Conclusion

Investing in property is a fantastic way to make a profit even when the economy is not performing very well, but it is important to do your research due diligence to increase your chances of making a successful investment. It is also important to ensure that you are already proficient in home renovation if you are planning to renovate properties yourself. So that means knowing how to use hammers, drills and chainsaws!