Should I purchase an investment property?

When it comes to saving up for your retirement, nothing beats putting your money in real estate. You get a tangible asset that can’t disappear or crash in the market. The secret is to spread out the risk over several different investment properties so your eggs are never all in the same one basket.

In order to minimise risk and maximise your profit, we suggest buying Sydney investment property in new buildings, whether it’s an apartment or a house. While you may pay more upfront, you’ll find it easier to rent the unit or house at a higher rate. You’ll want to buy a residential unit in an area that you can count to be in steady demand, such as a suburb near the waterfront or near a financial district. You can also look in areas that are due for new infrastructure. The rule is to always do your research. Be aware of local real estate market trends, which tend to move in seven to ten year cycles.

Buying in great locations will hopefully see you receive strong capital gains. You will then be able to use the equity from any capital gains to buy more properties and create a larger portfolio for yourself.

So, if you wish to retire and have some security behind you to enable you to enjoy your retirement years, get started on your property portfolio and buy yourself your first investment property. Most people will have no idea where to start when it comes to purchasing an investment property so having the right team to help you achieve your goal is crucial. Build a team which includes an accountant, broker, financial planner, buyer’s agent and a lawyer.

Our experienced Property team can simplify the process in purchasing the right place as your investment property. Contact Lisa Pizzonia at lpizzonia@franklaw.com.au to get started!

This is not legal advice.