Investing in property: where should I start?
New to property investment? Then you need to have a clear understanding about what’s involved in property investing. The best place to start is to research your market carefully.
Look to areas with a diverse local economy that can withstand upheavals such a major local employer shutting up shop. There needs to be a good mix of local employers that can supply tenants for your property.
You also need to identify what type of investor you are. Do you want to buy and hold (long term), renovate and sell (flipping) or are you looking for ongoing positive cash flow?
Then consider what type of property will attract tenants and ensure solid price growth for the future. And do you know the difference between positively geared and negatively geared property?
You also need to remember the basics and look for an investment property that will give a good rental return while offering attractive capital growth. You should also look to get property investment advice from a variety of sources, including a financial planner or advisor.
You can also speak to real estate agents in NSW, who will have local insights and a feel for where the market is going. And when it comes to selling your investment property a dedicated tax accountant can help you navigate the often complex rules that apply, particularly regarding your Capital Gains Tax obligations.