A client recently asked if I could send him some information on investing in property, including things he should be looking for, traps to avoid etc. Rather than regurgitate the myriad articles that have already been written, I sent through links to some useful websites and e-books I use to bookmark or download and read at his leisure. Then I realised that visitors to this website might find them useful too, so here they are:
From the folks at the Australian Financial Review: http://www.afr.com/personal_finance/investment_guide/investment_guide_property/
Momentum Wealth are a property investment consultancy based in Perth and have a useful blog section on their website as well as a number of e-books you can download. I subscribe to their newsletters:
Gavin Hegney is also based in Perth and has expanded his operations from property valuations to now include property advisory services. He and his team have put together a handy e-book below:
It’s hard to enter the world of property investing without coming across Michael Yardney. Whilst Michael is based in the Eastern States his blog is worth subscribing to and he produces a number of useful articles on investing like the one below:
And my best tips?!
Remember that most people, including me, that publish posts and e-books about property have an interest in doing so. Whilst investment magazines and websites and maybe even some seminars might be helpful, they typically exist to extract a dollar or more from you. Ask yourself what the agenda is from the information that’s being pushed to you and who stands to benefit most – them or you?
Do your research, seek professional advice and be highly skeptical about anything that promises to make you a quid quickly. Factor in changing macro market and economic conditions, like interest rate rises, as well as micro ones like unemployment, local investment and infrastructure and projected changes to demand or housing stock levels in the area (like proposed new subdivisions or lots of new developments nearby).
And the next big thing? Most statistics on suburb and property growth prices are lagging indicators, typically by the time the next hot suburb makes the popular press the window of opportunity has been and gone! To stay ahead of the curve you need to look at what’s nearby that hasn’t yet caught on. But that said, I personally think that time on the market is more important than timing the market. And there’s no such thing as crystal balls.
And the property that’s got its dodgy bits and doesn’t tick all the boxes it should but it’s really cheap? Ah, nup. That will probably cost you in the long run, so you don’t want that one either. And your obsession with getting a bargain? I’ve met investors who’ve spent almost a year looking but hadn’t bought because nothing was been cheap enough – only to see the market move upwards in the interim…
And never fall in love with your investment properties. That was probably my most painful and expensive property investing lesson.
Have a tip you want to share? Leave a comment below!
This information contained in this overview was believed to be correct at the time of posting but may have been changed or amended since – it also contains the personal opinions of the author. No warranty is provided as to the accuracy of this information and it should be taken to be indicative only. Readers should undertake their own due diligence investigations and not rely on the information provided on this page for the purposes of making personal or business decisions.