Tips From a Developer When It Comes to Investing in Property
Investing in property can be an exciting and lucrative experience, although it may be a little daunting especially when you’re starting out…it doesn’t have to be. Property investments should grow your wealth and provide you with financial freedom and security for the future – that’s why property continually ranks as one of the leading investment opportunities for Australians.
Our team has more than 60+ years combined experience in the property development industry, and we’re here to share our insights and recommendations for new and potential investors.
Before investing in a property or any new development, you must have a detailed and distinct plan that is referenced consistently throughout the process. Having a solid foundation for your investment strategy will reduce stresses around the process. A few things to keep in mind when formulating your plan:
- Identify your financial goals and ensure they are realistic and achievable.
- Measure all progress towards your goals.
- Find different ways to maximise your financial additions through property.
- Pinpoint the risks you didn’t know existed.
Know the market
This can be a bit of a testing task as the market is always fluctuating and very trend-based. Market knowledge takes time but when done correctly, it will allow you to have a sound understanding of your position. Having this awareness of the market can differentiate you from your competitors and can mean the difference between investing in a development site in a high-growth location or a site in a declining or stationary situation.
Undertake a feasibility study
As a potential investor, it is essential to have a thorough understanding of the property and site in detail. Completing a feasibility study will help you keep track of all your costs and lead times for completing the projects. Leave this one to the professionals as they will give you the important insights that you need to know before investing in property or big developments.
Budget for the extras
When you decide to invest in a property, it’s not just the deposit that you need to think about. There are ongoing property costs that must be considered, such as council rates, water rates, strata fees, maintenance and repairs, property management fees and a few minor extras here or there. Being able to budget properly will allow you to be as dynamic as you can be as a property investor.
Terra Ferma has delivered countless innovative designs and developments. If you are considering investing in property, talk to us.