Property can be one of the wisest possible investments, and the great news for those considering starting, is that investment properties in Melbourne has been one of Australia’s top performing markets.
But buying a wise investment property in Melbourne is not just about turning up at an auction, winning the day and then turning the key. Because property investment in Melbourne can deliver stunning results, some people mistakenly believe that any investment is a good investment. However, it’s crucial to do your homework.
While the returns can be substantial, investing in property in Melbourne still contains an element of risk. And as we are talking about your hard-earned money, and the sort of investment you will be relying on for your retirement, you can’t just randomly stab at the real estate section of your newspaper and expect it to start working for your prosperity.
Perhaps the real estate agent has a convincing argument for why a particular property is a wise and sound investment? You’re going to have to work harder than that.
Empower yourself with knowledge
Empowering yourself with knowledge is the most important thing you will do prior to selecting your investment property in Melbourne.
With that knowledge, you will build up a plan – an investment strategy – so that, before you have even started looking for a specific property, you know precisely what you want that investment to deliver for you – and you specifically. What is your financial situation? How much risk can you afford to take? Engaging a team of experts who know how to translate your specific circumstances, and match them with your needs, desires and goals, will pave the road to a wise investment choice.
So the very first research you need to do is to ensure that those on ‘your team’ are high quality, experienced and have delivered successful outcomes before, and therefore fully empowered to take your goals and turn them into reality.
Make your investment pick with confidence
With solid support behind you, only now are you ready to open that real estate section.
Firstly, now that you know how much you can afford to spend, you will need to know specifically about the Melbourne property market. But the good news is that, as an investor, you have much more flexibility about where to buy a property than if you were buying it to live in. That means you can get very specific about buying somewhere with the highest possible capital growth potential. You will want an area where the population is growing, where demand is on the rise, and where prices are consistently on the rise. Not only that, look into the potential for capital growth into the future – are there plans for more public transport links, or major shopping centres and schools? To achieve this, specific knowledge about the Melbourne market as a whole, and how it differs from suburb to suburb, is crucial.
Turn your investment into income
Next, you need to know how your real estate pick can be easily translated into income – and we’re not just talking about re-sale value in the future. It needs to be appealing to the widest possible market of renters right now, so – for example – you’ll be looking for something that works not only for an established family, but also an aspiring couple, whilst being low maintenance for you as well as structurally sound, so that you are not eating into the investment gains with too many ongoing costs.
This can be a tough job, but armed with the right knowledge and with the right expert help from property advisors such as IPRG, you can be sure that investing in the property market in Melbourne is a wise choice for you, your family, and your future.