Category: Selecting A Property

5 Factors to Consider when Starting in Real Estate (Expert Tips)

Are you new to real estate? Do you want to know some practical ways on how to get started? In this article, you will learn what you need to know about property investment, straight from the experts who have been in the business for years.

Getting started in property investing can be confusing and costly if mistakes are made, but with careful planning and first-class market information, kick-starting your financial future can be a breeze!

1. BUDGET

The first decision for first-time investors should be to decide on their budget – and then stick to it. It sounds obvious, but knowing your budget and getting pre-approval for your loan in writing so you can put in realistic offers with confidence is absolutely critical.

You also need to factor in purchase costs such as stamp duty, mortgage costs and settlement costs.

2. TYPE OF HOME

There is a huge difference between buying a home and purchasing an investment – the best opportunity for capital growth may not necessarily be the newest, nicest property. Investors need to carefully consider why they are buying and what they expect from the purchase.

However, there are issues to consider such as if you are willing to undertake renovations, how much maintenance you want to deal with and if you want to manage your own investment. All of these decisions play a part in deciding whether to buy a house, unit, townhouse or any other property that best suits your needs and budget.

Download Beginner’s Guide to Property Investing

3. LOCATION

Limiting your search for an investment property to one or two suburbs is ideal, especially for new investors. It’s imperative to know as much as possible about the area you’re wanting to buy into – including that you can afford to buy the specific property type you want in these suburbs. If not, you may need to look to a suburb further out or look for an older property.

4. PRICE

When you’ve chosen your target suburb, the next step is, knowing the right price to pay for any property.

One of the best ways to ensure you can accurately assess how much to offer is by looking at 50 to 100 properties in that suburb and assessing their eventual sale prices, with the aim of being able to walk into a property and know what it is likely to sell for within a few per cent.

Once you have found a property you are keen to purchase, decide what it’s worth in the current market and make a good offer, being careful not to overpay and ensuring you have the right terms and conditions. The key is to act quickly, but to not get carried away when there is competition or pressure from the sales agent – and jeopardise the performance of your investment by overpaying just to get into the market.

5. TIMING

Another crucial piece of advice is not to try and time the market. Holding back believing prices may drop can leave you wishing you’d got in sooner and not tried to pick the exact bottom.

Fear and indecision can have a huge cost in real estate, as can delaying buying in order to save a bigger deposit.While this sounds like a clever strategy, it can hit the hip pocket hard as you can miss out dramatically in lost equity and potential capital growth.

EXPERT ADVICE 

Watertight research and data are critical in property investing, and there are a raft of ways to access such information, so don’t be afraid to seek expert help if you’re not sure as it can save a lot of headaches in the long run. 

 

shadow-ornament

If you want more information about property investing, why not read our Property Investing Beginner’s Guide eBook.  Or, if you’re ready to talk about buying your first home, why not complete our Getting Started form to get the ball rolling.

NEED FINANCE?

If you’re ready to invest and you’ve got any questions about finance, call us for a free Financial Health Check: 08·9381·7450 or download our Finance Services information.

CONNECT WITH US

To stay up to date with our latest information, property news and blog posts, you can subscribe, or follow us on Facebook and Twitter

 

Property Wizards believes everyone has the right to the knowledge to help you accumulate wealth, no matter your background, education or income.

We can help you unlock the potential of the real estate market for your family through savvy property selection, negotiation on price and conditions, development expertise and the magic of robust research.

Regardless of market conditions, our research, local knowledge, and access to silent sales means we find the hidden gems that can outperform the market in capital growth and rental returns for long term wealth creation.

Importantly, we’re able to provide property investors and homebuyers with the same level of representation that property sellers have benefited from for years.

Your property portfolio is your path to financial freedom and the lifestyle you’ve been longing for.

Property Wizards takes away the stress of buying a property and saves you money at the same time. We can show you how, or you can sit back and let us do all the hard work for you.

Comments »
0 Comments

Waiting for Proof the Perth Market has Bottomed (You may want to rethink your strategy)

 

Homebuyers and investors waiting for proof the market has bottomed out may want to re-think their strategy.

The practice of sitting back and waiting for confirmation the market has definitely bottomed out could be a costly move.

Many buyers want to have certainty, so they stay away from the market until they see strong evidence of price growth across the board.

This tendency means when the market is at around the bottom, there are less takers and it can present the perfect opportunity for astute buyers to potentially snap up a bargain from a keen seller and give you a head start on others.

Making the most out of property investing is about the right property choice and time spent in the market, rather than trying to time the market – and this is certainly true for the Perth market right now, so if you delay buying, you risk missing out.

Selecting your ideal property

However, buyers must remain aware that just because there are properties available does not mean they are good investments and selecting the right property is crucial. Similarly, some sellers are still asking too much, and those overpriced properties will be left sitting even as the market turns.

The majority of our enquiries are for add-value properties – those where the price is good to start with and then offer potential for adding value quickly, making it even better. People are wanting to be more in charge of their own destinies – I guess because the market has messed them around a little in the last few years.

So being back in control of decisions relating to their financial security and future is paramount in the minds of investors in the Perth market. Self-Managed Superannuation Fund buyers, and those people looking to escape the rat race through investment are key players at present.

They are buying now because sentiment is turning and for the good properties there is already competition, meaning prices may soon start to edge up.

Choosing the right suburb

Choosing the right suburb is critical. Areas close to the city, the ocean or river are where people most want to live. Next best is having easy access to these lifestyle attractions along with others such as shops and cafes.

Being close to work opportunities and good schools ranks highly and fly-in fly-out workers want easy access to the airport.

Areas that have good long-term prospects – not just flavour of the month and not just because next year is expected to be good – you need it to continue being good.

Also, where you can get good add value opportunities, whether they be renovation, subdivision, development, future rezoning or just that extra X-factor that sets it apart from others.

If you want more information about property investing, why not read our Property Investing Beginner’s Guide eBook.

If you’re not sure what type of strategy would best for you or you would like to learn more about different strategies, why not download our 4 Strategies to Success fact sheet.

Or, if you’re ready to talk about buying your first home, why not complete our Getting Started form to get the ball rolling.

Need finance?

If you’re ready to invest and you’ve got any questions about finance, call us for a free Financial Health Check: 08·9381·7450 or download our Finance Services information.

Connect

To stay up to date with our latest information, property news and blog posts, you can subscribe, or follow us on Facebook and Twitter

 

Property Wizards believes everyone has the right to the knowledge to help you accumulate wealth, no matter your background, education or income.

We can help you unlock the potential of the real estate market for your family through savvy property selection, negotiation on price and conditions, development expertise and the magic of robust research.

Regardless of market conditions, our research, local knowledge, and access to silent sales means we find the hidden gems that can outperform the market in capital growth and rental returns for long term wealth creation.

Importantly, we’re able to provide property investors and homebuyers with the same level of representation that property sellers have benefited from for years.

Your property portfolio is your path to financial freedom and the lifestyle you’ve been longing for.

Property Wizards takes away the stress of buying a property and saves you money at the same time. We can show you how, or you can sit back and let us do all the hard work for you.

 

 

Comments »
0 Comments

Why it pays to have professionals on your team at auction (CASE STUDY)

Property Wizards represented a client at auction over the weekend and achieved a fantastic outcome – securing them a beautiful home in the Perth hills.

The property was secured at $25,000 below the bank’s reserve using auction techniques and skills to ensure bids did not reach any higher than they had to and through skilled post-auction negotiation. Here’s how… (more…)

Comments »
0 Comments

Yield or capital growth – which property investment strategy should you go for? (ANALYSIS)

If you’re just starting out in property investment and you’re not sure which investment strategy is right for you, it’s worth exploring the differences between yield and capital growth.

Understanding the differences can help you work out which strategy is right for you, and therefore the type of property you should be looking for. (more…)

Comments »
0 Comments

What’s the difference between a real estate agent and a buyer’s agent? (Q&A)

While most people know what a real estate agent – or seller’s agent – is, it seems not everyone knows what a buyer’s agent is – or does.

So we thought we’d break it down. (more…)

Comments »
0 Comments

On the move – Perth property market on the rise again (ANALYSIS)

While there’s been a lot of focus on the downturn in the Perth property market, there’s plenty of good news coming in.

A number of sources have revealed that Perth’s property market has reached its low and is starting to show signs of improvement. (more…)

Comments »
0 Comments

Low interest rates add to the appeal of the Perth property market (TIPS)

Perth, Western Australia, viewed at night reflected in the Swan River.

We already know it’s a great time to invest in property in Perth.

With the Reserve Bank of Australia’s decision last week to keep the cash rate at 1.5 per cent, this certainly adds to the appeal of getting into the Perth property market.

So while interest rates have stabilised, they are likely to rise. So if you’re ready to buy, the time really is now.

What should you do next? (more…)

Comments »
0 Comments

Is it really a buyer’s market? (Q&A)

 Hand on old door (old house, renovation, knock-down)

“It’s a buyer’s market!” you probably keep hearing. Perth’s current property market is a buyer’s market! The time to buy is now!

To dig a little further and find out if it really is a buyer’s market, and what this means for investors, we asked Property Wizards director Liz Sterzel what she thought. (more…)

Comments »
0 Comments

Median house prices – magical or misleading? (Q&A)

Hand Pushing The Button House by phanlop88 - resize

Whether you’re just starting out in property investment or you’re a seasoned pro, you’d be familiar with the term, median house prices, and have probably spent countless hours scouring newspaper articles and real estate data trying to digest and distil them.

But what do they really tell you and what else do you need to know to make sense of them?

Well, we thought we’d break it down for you. We asked Property Wizards Buyer’s Agency director Trevor Dunkley for his insights on median house prices. (more…)

Comments »
0 Comments

Why you need a buyer’s agent in your corner (Q&A)

Advisor.jpg

As people have become more aware of the workings of the real estate industry, many buyers now recognise the need for representation.

Just as you might engage a lawyer, a doctor, an accountant to address specific legal, health, financial aspects of your life, it makes sense to engage a professional buyer’s agent if you’re considering buying property.

And, if you are considering buying a house or apartment, the seller is likely to have an agent on their side, so why not have a professional on yours.

Whether you’re just starting out, or even if you’re a pretty savvy property investor, you’re probably asking, “but what can a buyer’s agent do that you can’t do yourself?” (more…)

Comments »
0 Comments

First home owners grant increase – what does this mean for you?

Making a plan

Thinking about buying your first home? Taking advantage of Perth’s current property market and the Federal Government’s First Home Owner’s Grant (FHOG) is a great place to start. But do you understand all there is to know about it?

Following the state government’s announcement of a boost to the first home owner’s grant, we thought we’d break it down for you. (more…)

Comments »
0 Comments

New year, new you, new home? Why you should make property investment a New Year’s resolution! (TIPS)

iStock_000017108927Large

A new year often inspires a time to reflect – on your personal goals, health goals, financial goals. They’re called New Year’s resolutions for a reason. Have you made any?

If property investment has made your resolutions list or is part of your 2017 financial goals, now is a very good time in the Perth market. And if it hasn’t, perhaps it should!

If you’ve been umming and aahing about buying an investment property, now is a great time to make it happen. (more…)

Comments »
0 Comments

Securing the right property – cosmetic appeal versus capital growth potential (TIPS)

Coat of paint

You know the old saying: “Don’t judge a book by its cover.” Many investors place too much emphasis on looking rich rather than becoming rich, and make the mistake of buying properties based on cosmetic appeal instead of their capital growth potential.

Buying a property just because it’s pretty could mean you end up with an under-performing investment.

Our go-to tips for weighing up aesthetic appeal versus potential capital growth include: (more…)

Comments »
0 Comments

What you need to know about property development (TOP TIPS)

construction-tools-with-blueprint-by-vichaya-kiatying-angsulee-resize

So you want to buy a property to develop or subdivide, but not sure where to start or what to look for?

Knowing how to secure a property with superior development potential can be difficult, especially if you are just starting out.

Here are our top tips for a successful development project: (more…)

Comments »
0 Comments

Why waiting can be a costly error in property investment (eBOOK)

beach-contemplation-man

While it’s one thing to rush and make poor decisions under pressure, waiting for “the right time in the market” can prove equally costly, and may not be a smart property investment strategy.

In periods like this, when the Perth property market is at a low, many investors become increasingly concerned about whether or not it is “the right time” to enter the market.

But, such a situation provides the perfect illustration of why waiting to get into the real estate market can be costly.

By the time buyers who’ve held off realise the theory that there is a “right time” to enter the market is flawed, they’ve already missed the boat. (more…)

Comments »
0 Comments

FREE Starter Pack

free-starter-pack

With everything you need to get started in property investment, development or home buying. Click here

FREE Perth Property Market Report

FREE Perth Property Market Report

With latest suburb information, growth rates and essential information for property investors and home buyers. Click here

FREE Property Briefings

FREE Property Briefings

Information sessions on the property market, latest strategies, investment and development. Cutting edge information, no sales. Click here

Subscribe

Subscribe

For the latest Hot Properties, Tips, Strategies, Property Market Info. Click here


Awards and Recognitions