Property Investing in The 21st Century

Property Investing For Beginners Part 1

Many people who are new to property investing ask me just how do you go about it. They want to know the tips, the advice, the pitfalls, and of course the leverage that investing in real estate can give you. Today we will have a look at some of the things every beginner should know before purchasing their first investment property.

Local Property Market

It is a good idea to conduct thorough research in the local area that you want to purchase property in.
This is not limited to the local area that you live in, as you can use the Internet to access tools and resources that will allow you to get this property data easily. Become aware of past and current median house prices, and what areas are desirable. The suburbs surrounding the better area usually get taken along for the ride when there is a property boom going on.

Speak to agents in the area, and get a feel for what is happening, and where the housing market may be going. Finding a good real estate agent is a great thing to have on your team. Usually, if you look after them, they will look after you.

Property Condition

If you are purchasing investment property, it is important that you get an independent building inspection done as part of the ’subject to’ clause when you make an offer. Do not use someone who the Real Estate Agent suggests, and instead ask other property investors that you know, who they use. Although not as wide spread now, there still is some shonky dealing going on out there.

If there is just cosmetic faults to a property, this is OK, as it can work in your favour when you go in to negotiate. Be very wary of structural faults, as these will be very costly, both in terms of time and money.

In the next post we will have a look at part two, of property investing for beginners.

Real Estate Investment Tips

For anyone who want to become a real estate investor, there is always room for some sound investment advice. After all, why not learn from others past mistakes. There are plenty of ways to get good real estate advice, and there are even more ways that could be quite damaging for you as well.

The Internet is a marvellous resource for getting all sorts of investing information, including property investing. Head for speacialty real estate forums, where many like minded people will trade advice, and assist you with any question that you may have. There are also many specialty social networks nowdays, where you can freely join and become involved.

Your local Real Estate Agent, is still an excellent place to get good tips and when you find a good agent, become a genuine friend of theirs and they will only to happily pass on their wisdom. Look for an agent who is one of the top sellers in your area, and have many years of property experience behind them.

Perhaps the best place to get real estate tips though, is off any successful property investor. This is someone who practices what they preach, and actively takes their own advice. There are many successful real estate investors out there, and many of those are quite humble about their success so you may not realise that even your friends may be amongst them. Anyone who is a successful property investor, will usually impart their knowledge on you, if you are seen to be genuine and grateful.

That leaves us with where not to get real estate tips from, and there are some places to be wary of. Well meaning family, friends, and co workers are the biggest offenders here. Sadly, the advice you get here is unfounded most of the time, and just their opinion. Unless they have investment properties and keep adding to their property portfolio, then it may be a wise move to not ask for their opinions.

Purchasing Investment Property Without Fear Part 3

In the last two posts, we have looked at some of the more common fears a property investor will face in their journey of wealth creation. Today, we will focus on the one fear that many face, and that is the fear of failure.

Due mainly to conditioning throughout our lives, humans have a big fear of failure. This is especially true when dealing with money or investing. One thing that is even harder in a country such as Australia, is that the Tall Poppy Syndrome is alive and well. That is another story in itself, so I will move on.

Can you fail as a property investor? Absolutely, then again, you can fail at anything in life if you are ill prepared. What if you were to become financially educated and arm yourself with great property investor research tools, do you think that would make a difference!

Becoming aware of how property cycles and property markets work, will take away a lot of the fear for you. The majority of property investors actually only have one investment property, as they still don’t understand how the property market works. Do you think if you were better educated and stayed updated with current market data that you would be more inclined to add to your property portfolio.

Do not fear failure, rather, you should more fear not doing or not trying. That is real failure, when you don’t act. Of course, others may tell you different, and remind you at the state of the economy, or advise you that the property market has peaked or the property bubble is about to burst. Just ask yourself one thing, and that is, is the person giving yo advice a successful property investor? The cheapest advice you can get, is usually the advice that ends up costing you the most.

Purchasing Investment Property Without Fear Part 2

In the previous post, we looked at some fears property investors face when purchasing a property. These fears, if explored properly, can be unfounded.  Real Estate Agents and falling property prices have been discussed, so let’s have a look at some more fears.

Interest rates really do scare some people. This is because on the most part, interest rates are out of the control of the investor. There are ways to combat this, such as locking in your interest rates for set periods of time at a fixed rate. As a smart investor though, we look to purchase property with a long term view. With the compounding effect of an appreciating property, even if interest rates do hike up for a few years, we are still in front with the increased equity we have. Interest rates is the friend of the media, as they can suck people in to only see the doom and gloom. We know better though.

Another fear property investors have is Tenants. There are a lot of horror stories out there of unruly tenants trashing their landlords property and not paying rent. These are the exception, rather than the rule. With the recommendation of a great property management agent, any prospective tenant will be thoroughly screened and referenced. A must for all property investors, is taking out the correct landlords insurance. This is very inexpensive, and will cover you from non payment of rent, right through to worst case scenario and a tenant trashes your property.

That’s all for part two of this post. Next time we will look at another fear that may hold you back, and that is the fear of failure.

Purchasing Investment Property Without Fear Part 1

Buying an investment property can be a major even in a persons life. In fact, many people who want an investment property are to scared to go through with it. There are many reason for this fear, although many of these fears are unfounded.

There are lots of challenges when conducting a property deal, and this is normal. From experience I can tell you that the first property is the hardest, and after that what used to be challenges are just minor bumps. Often the hardest part of the deal is that first call to the Vendor’s Real Estate Agent, as there is a fear of an unknown person that you will have to deal with.

Real Estate agents are there to mediate between a vendor and a purchaser, and while there are some we would rather not deal with, the ball is always in your court. From the start, you have the advantage as you are the one in control of the price, more so than the vendor at least.

There are other fears, such as what if the property market drops. Perhaps the market may drop, if you bought during the emotional highs that can be experienced in a boom market. While it is best to purchase an investment property during the emotional low, it is still alright as if you are a smart property investor, then you will be purchasing the property for a long term view. Eventually, before long, the market as always, will rebound and you will be in positive equity again.

In part two, I’ll go through some more common fears property investors face, and explain why they are unfounded.

Falling property prices and what you can do: Part 2

There are always exceptions to the rule, and there are still excellent properties that are appreciating in value. In order to find these properties, you must be doing focused research and really know a certain area of a city.

This is now a time to be doing that research, and getting ready to purchase investment property. Interest rates are coming down, rents are going up, and the crowd mentality is in a state of fear. This provides the informed and astute property investor an excellent opportunity to bargain hard for outstanding properties that may have been out of reach for the last few years.

There are lots of excellent property research tool available both on and off line to help you in your research, and they are a small price to pay for accurate data. Use of these tool will ensure that you are getting an excellent property in the right location, that will begin to appreciate quickly once the housing market begins to recover.

In conclusion, although the media screams doom and gloom about the property market, this is often the best time to take advantage of some fantastic opportunities and secure investment property that is now at it’s proper, or undervalued market price. Through astute research, you can start or add to your investment property portfolio and put yourself in a position to generate fantastic returns when the market turns around in the near future.

Falling Property Prices : Part 1

Property prices are coming down in many countries of the developed world. This is due to many things, including previously over inflated prices, sub prime lending, and of course this latest credit crisis. The USA particularly has been effected the worse, with some home valuations down by 80%.

So has the slumping property market still got a way to go you may ask. It depends on a lot of factors, and of course what location you are talking about. As I am in Australia, I will comment on that market in this article.

Most capital cities have seen falling property prices, and at the time of writing, Perth has seen the biggest drop. Let us remember though, that Perth has just come out of the biggest property boom that it has ever seen, and the property prices of eighteen months ago were quite inflated. In all capital cities we are seeing a correction.

In the inner ring of suburbs, property prices will be faring better than those in the mortgage belt. There are a lot more houses in the outer suburbs, and there is some pain out there. If anything, most areas will now stay flat, possibly for twelve or more months.

Welcome to the 21st Century Academy Property Investing Blog. My goal here is to give you, the valued reader, strategies and advice to begin or improve the way you invest in property.

As an avid property investor myself, I am able to pass on a lot of tips and tricks that will help you on your journey to create wealth through the investment vehicle that is property.

Please be sure to leave feedback, and if there is anything that you wish to know in regards to property investment, then please let me know so I can write a post on the subject for you.