CHRIS GRAY’S TOP 5 TIPS FOR INVESTING IN PROPERTY

With house prices predicted to increase in several capital cities next year, rentvesting or renting where you want to live and investing where you can afford, is a flexible wealth creation strategy worth considering. In many cases, if implemented correctly, rentvesting can provide better financial and lifestyle benefits than living in your own home. For first home buyers especially, prices will generally increase faster than you are able to save so it makes financial sense to enter the market somewhere affordable while renting elsewhere. Hot spots offer the potential for instant equity and strong gains in the short term, but run the risk of lower long term growth or even no growth at all if you get it wrong. It’s much safer to invest in blue chip suburbs which offer a better guarantee of consistent growth and steady rental returns. To make a considered purchase, pick two or three blue chip suburbs and then inspect at least 50100 properties across the area before investing. A well thought- out investment strategy is integral to making a good property purchase, especially if you are looking to invest in multiple properties. Have a clear picture of your financial position and work out your ideal investment suburbs and property attributes before you begin searching. This will give you a goal to work towards and help you better assess the suitability of various properties as potential investments. Keep in mind your main focus should be investing in safe, solid assets that will rise in value over the long term. Instead of looking for the cheapest property on the market, concentrate on investing in quality properties that tick all the boxes as these will provide better long- term value. Generally, properties positioned away from noise and main roads, with two or more bedrooms and plenty of natural light will always be in demand and easily attract prospective tenants. Building a professional team of experts to help you invest in property can save a wealth of time and help prevent a poor purchase decision. As property is one of the biggest financial investments most people will make in their lifetime, it makes sense to use the very best accountants, financial planners, buyers agents and property valuers who can offer specialist market knowledge and expertise. Try to select experts who invest in property themselves.