These 5 signs will tell you if it’s time to invest in property
- Posted By Ndl 1 Realty
Planning to invest in property? Buying your first investment property seems like an intimidating thing to do, but for many out there, regardless of their age, they have already taken that important first step and set themselves up for a brighter future.
You’ll never get wrong on investing in property. As an asset class, it has given great ROI over the past decades for investors.
Property prices rise up as the years pass by and that is a well-documented fact. So, it’s not a mystery that more and more people dive into property investing.
But how would you know if it’s the right time to invest in property? Here are the signs that will tell you if you’re ready to invest.
1. If you’re already thinking about your financial future
Have you found yourself thinking about what happens when you retire and where you will be getting your future money at that time? That’s a clear sign that it’s time you do something about it now.
Too many people put property investing at the back burner thinking it’s too hard to enter the market. There are a lot of people who might not know that they are ready to invest, and just decide to sit on it for a very long time.
It’s better to start investing earlier than investing closer to your retirement age.
2. There’s equity in your home
You don’t need to have thousands of dollars saved up in your bank account in order to jump into property investing. In fact, the average investor doesn’t have cash sitting around.
You might have under-utilised equity in your home that you can use right now and that equity will be a better way of putting cash in. With interest rates at record lows, now is the perfect time for you to refinance or access the usable equity in your home.
3. You have an open mind to talk about the future
If you feel that you are already well-established in life and wondering how you can better prepare for the future, that’s a great indication that you’re in a position to start investing.
The only thing you will need is to be receptive to getting quality information that will push you to enter the world of property investing. Don’t be intimidated by real estate jargon and the standard procedures in acquiring an investment property. Have an open mind in learning these things so your first start goes through smoothly and without trepidation.
4. You have already set your financial goals
If you have already listed your financial goals, this might include retirement planning or investment portfolio expansion. There are many reasons to invest in property, which can include capital growth.
There are a lot of people thinking about how they can invest while they are working in their early career years.
It helps that you know your financial goals as they will determine the locations you buy into, the type of property you acquire and the structure of your finances.
5. You are thinking about your investment strategy
There are no hard and fast rules when it comes to property investing, so people who are already keen to buy may be trying to think about the best strategy for their circumstances.
There are common strategies to consider such as negative gearing, buying and holding established property, buying new rent-ready homes and gearing your portfolio for positive cash flow.
However, before you can commit to something, make sure you have already sought advice from an expert as buying a property is an enormous financial commitment.
Speak to industry experts to guide you in this seemingly complex process of purchasing an investment property.