New investors in Liverpool are entering the market every day and many of them will become successful. There are, however, those which will fail to achieve their goals. You can increase the chances of becoming a profitable investor by asking yourself the following seven questions before you start your portfolio:
1. What Is The Point Of Investing?
Have a goal in mind. Many people want to invest in Liverpool but aren’t sure what the purpose of investing is. Making money is the most obvious answer but it is sometimes too general of a goa. Do you want to make a career out of investing or is it going to compliment your income? How much time have you given yourself to invest?
Give yourself a few goals. You might be planning for an early retirement or you are looking to eventually sell your investments and move to a different area. Whatever the goal may be, ensure it is clear enough to keep you motivated.
2. Can I Afford It?
Before you even start looking at property to buy, you need to do your sums and find out whether you have the ability to take on a loan. It’s worth having a loan pre-approved to avoid disappointment.
3. What Type of Property Should I Buy?
This will depend on your goal and the best strategy to achieve your goal. If you are aiming for security and low risk, you might want a property which will be in demand by tenants and possible future buyers. Apartments usually cost less to maintain and are less expensive to purchase meaning many investors start with a unit in a central location.
4.What Type of Location is Best?
Generally speaking, the highest demand areas are those with a highly dense population. These tend to be close to city CBDs, the ocean, harbour or other locations close to water or amenities. It is important to remember that all rules have their exceptions and plenty of market research should be completed before you make any decisions.
5. Is There a Good Time to Buy?
The best time to buy is when lots of people are selling. This ensures bargains as home-owner’s cut the prices down in order to sell their home quickly. Keep an eye on rental prices. If they seem to be increasing, it is likely a shortage of rental properties exists and you will experience a great return.
6. Where Do I Go For Advice?
Talk to as many people as you can! If you have friends or family members with rental property portfolios, ask them for some tips. Different strategies work for different people, so don’t take any single person’s word as gospel. Another great source of information is the Prudential Business Development Team. They can sit down and have a chat with you and answer any questions you may have. You can give the team a call at any time on 4628 0033.
7. Do I Have To Like The Property I Buy?
The short answer is ‘no’. It just has to fulfill the investment criteria mentioned above. Everybody ‘likes’ different things when it comes to décor. Amenities – within the property and the suburb are the most important as they are not within your power to change.
