Working a nine-to-five job to earn the money you need to support yourself and your family is the norm, but this leaves little room for financial freedom in other aspects of your life. While taking care of the necessities — bills, groceries, your children’s school fees, payments on your house or apartment — is well and good, you also need to have an emergency fund for, say, unexpected hospitalisation fees, or sudden and major house repairs, or even auto accidents or repairs. You would fare well to go on holiday every now and then and enjoy some nights out to catch a movie or eat out with your loved ones. And you’ll want to look forward to secure and comfortable retirement years. These “extras” require funds — and you won’t get those from your lone nine-to-five job.
What many people have discovered is that investing in properties can be a good way not just to earn additional income but also to build actual wealth — and the key is to make money work for you, instead of the other way around. If you have a condo unit rental or even a commercial property to your name, you can have money coming in through different streams.
If you’ve only just begun considering making a solid investment in property, here are a few basic questions answered by property experts from Australia-based wealth management company JDL Strategies to help you get a good grasp of the key concepts involved.
What type of properties can you invest in?
Some of the more common property investment types are single family homes, apartment complexes, commercial buildings, and condominium units. You can begin building your property portfolio by choosing one and learning as much as you can in that niche before venturing into a new property type.
Once you’ve selected your preferred type, how do you find such an available property?
Simple networking is one way of finding a suitable piece of property; friends or relatives within your immediate circle or individuals in more formal channels like investment organisations can provide tips to help you find what you’re looking for. Commercial brokers may also have information on properties that aren’t publicly disclosed, and real estate agents will often have lists of homes that are currently up for sale.
Where do you get funds for your property purchase?
Investors with good income and credit can be approved for loans from reputable banks, mortgage brokers or credit unions. There are also other lending institutions you can approach if your purpose is to refinance or sell a house quickly. Private lending (from people you know) is also an option you may consider.
Who is in the best position to manage the property?
Some investors choose to manage their property by themselves. They will need to learn the different responsibilities of a landlord (enforcing a lease, finding tenants, collecting rent payments, balancing the books, etc.) and partner with professionals to take care of other important tasks that are relevant to property management such as plumbing and repairs. Of course, there’s also the choice of hiring dedicated property management firms who can perform these tasks for you.
Source: http://propertymarketers.com.au/ is the best site to check out if you want to learn more about ways on how to boost your profits when you invest in properties.