As a property investor myself, let me share with you some tips I have learnt over the years that can help in how to make money from property investment.
I have invested in properties in Western Australia, South Australia and Queensland and I can honestly say that I would not be doing this if I did not believe that you could make a profit from investing money property.
The media is constantly reporting on people making it rich through property investments, but how do property investors make money? The good news is anyone can invest in property. No formal training or qualifications are required. If you have a steady job and a little capital, then you have the ability to start investing money property and getting money back. Property investment is not just for the wealthy, however it does have the ability to offer you financial security.
My first tip on how to make money from property investment would be to start now. As previous blog posts have stated, ‘there is no time like the present to invest’. However before investing money in property you must do your research. Fortunately for you, Investor Assist exists in order to help you make money from property and be one step closer to achieving financial security. There is also a handy infographic explaining the way in which we can help you through your property investment journey.
When considering how to make money from property investment, there are traditionally two ways. The first way is through rental income; this is money that goes directly into your pocket. For this to happen though, the rental income must exceed the costs of the property after investing money. These properties are known as ‘cash flow positive’ properties. Cash flow positive properties are what every investor wants, a property making money rather than recording a loss.
The second way of how to make money on property investment is to rely on the fact that it has the ability to increase in value. In an article by Dale Alcock regarding why property is a good investment, he states that unlike a company, a property can’t ‘go broke’, with residential property considered a much more secure investment. This is the reason banks are willing to lend up to 80% of the value of the property or even 90% with mortgage insurance. Property has consistently produced sound returns for over 25 years with people constantly making a profit on their properties after investing money.
One of the biggest factors that will determine whether or not you make money from your property is the neighbourhood you buy in. Renters wish to live in an area within close proximity to important amenities such as shops, cafes, parks, public transport, and schools. It is imperative that you do your homework and consider the rent returns for the suburb you have chosen. If the average rent is not going to cover your repayments then it may be worth looking elsewhere. Keeping these factors in mind is how you make money on property investment.
For more information on how to make money on property you can call us on 9200 7200 and one of our Property Investment Specialists will be happy to talk to you. Alternatively, our website is full of educational tools, resources, and information. We also offer a wide range of services, including house designs specifically for investors that provide easy and exciting options for people looking to start investing money in Western Australia.