Property Investment is the path to financial freedom?
For many reasons, property investment is the perfect type of investment for the less experienced investor. Most investment initiatives require very large savings, lots of experience, and yet the risk factor remains high as the returns may not always be there, at least not initially.
With property investment however, you can get away with mediocre savings in order to obtain a home loan for the purchase of your investment property. Provided that the property is bought in a reasonable area, with great outlook, (i.e. growth area, close to amenities, schools, shopping centers) this should increase the likelihood of tenants paying good rent.
As long as you ensure that your property is maintained very well, which will take some effort from both yourself and your tenant, then the rent for the property can also be increased over time resulting in greater profits. Houses, flats and villas generally make for very good appreciable assets. While nobody can predict the direction of the market, it’s wise to exercise a level of caution when picking an investment property. There is no substitute for good research.
Once you move reliable tenants in, assuming your home is in top nick and its location is in a desirable area, there will be scope for you to set a decent asking price for weekly rent which could be both used to repay your existing loan as well as be a source for generating profit. This is a popular method for managing a property for most Australian homebuyers and investors due to its simplicity and proneness to deliver guaranteed rental returns.
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