In this day and age, you need various income streams in order to be financially stable, and one of the best ways to create such income is through property investments.

You may either lease, renovate or develop a property in return for a profit. However, you need to understand when and where to purchase and how to spot whether the property is a good investment or not. It is not about having money to purchase, it is about working within your financial means and working smartly.

If you qualify for a bond and rent the property then the rental can be used to settle your monthly bond instalments. Income is therefore created if your bond instalments are being paid – only if rental is greater than the bond instalments. There are various factors to be considered therefore it is imperative that you do your research before making any final decisions.

You may also purchase a property and renovate it to increase its value. Once renovations have been completed, you may sell the property for a higher price based on its current market value with the renovations.

Another option could be to subdivide the property – in other words, you are turning one property into two portions or even three portions. Therefore, creating two or three properties. This option can be a lengthy and tedious process. Please contact us for further information.

FACTORS TO CONSIDER

1. Do your research and do not make any hasty decisions.
2. Look at properties near established suburbs and research whether there is substantial growth in the community. These properties may be marketed at an affordable price but will only increase in value if there is a foreseeable growth, in that the community is generating more income by the creation of businesses and shops.
3. Buy within your financial means. Start small but try to buy in an area that has shown or is showing growth.
4. Another aspect to look out for are the amount of schools located in the suburb. Especially if there are equal amounts of Primary Schools and High Schools. People tend to move closer to schools to ensure the best possible education for their children, and the more schools there are the better the chances are that their child(ren) will be at a school closer to home.
5. If you witness an increase in movement and rental increases in a particular suburb, it would be a great time to invest in such property because there is growth.
6. Consider other factors such as traffic and amenities – whether there is public transport or whether there is easy access to shopping centres for example.
7. Avoid scams! Ensure that you are working with a reputable registered agency. Look out for fake social media accounts, email addresses and websites. For example, do not make any payments without signing a document called an Offer to Purchase (also known as a Deed of Sale).

The above is not an exclusive list and it does take time to understand the property market. If you would like to enter into the property market, then make sure to take the time to educate yourself and ensure that you always do your research before making any decisions. If you are unsure about where to start, contact a real estate expert from a reputable registered estate agency to obtain the best possible advice. Property investment will always be one of the best ways to create an income stream which will in turn create a better future for yourself through financial stability.