By Sharon Koh, KEO
Date: 31 Aug 2020
To get started in property investment can seem to be rather daunting, and in fact when it comes to investing overseas – the level of complexity might seem to be intensify.
Over at GREEX we aim to demystify the world of property investment especially when it comes to investing in commonwealth countries such as Australia, and in today’s conversation – we will discuss about investing in Australian properties especially for people just starting out.
This article will be particularly helpful if you consider yourself a beginner in the realm of property investment, and will perhaps serve as a basic guiding framework – feel free to clarify with us if you have any questions.
Guiding Principle #1: Learn From Profitable Property Investors
This might seem to be a common sense to many people, but this is quite critical when it comes to the world of property investment – especially when we are about to commit to investing in overseas opportunities.
It is important to learn from people who have a proven track record making wise investment decisions, and understand the thought process behind how and why it became a success.
There are 3 key aspects that we can lookout for when we learn from these remarkable people, and they are:
1. What is their overall Capital Gain & how did they spot this opportunity?
2. How do they grow their passive income, what are some of their strategies?
3. What are some of their effective ways, to reduce their overall liabilities?
Guiding Principle #2: Pen Down Your Financial Game Plan
By putting a $ figure to our overall passive income output that we desire & a timeline – it will help us in charting an overall route map when it comes to planning the type of property or land that we are looking to invest in.
There are plenty of opportunities out there with different investment time horizon for the overseas land/property to mature – and when it comes to investing in Australia with plenty of ripe suburb land for us to capitalise on,
it is important for us to define our winning outcomes clearly.
For example, if our goal is to achieve a passive income of $50,000 a year, we will need to invest in several properties that can yield a collective potential rental income above $4200 a month – which also means we need to set aside a minimum viable investment capital in accordance with our financial goals.
Guiding Principle #3: Do Your Own Due Diligence
Nobody can help us make the “best decision” – only ourselves after we fully weight in the pros & cons of investment. When e invest in Australian suburbs for example, we need to do our own thinking and here are some questions for us to think about
1. What is the population size over the suburb – is it still growing or not?
2. What is the total wealth capacity of the population there – is there any potential gentrification that can improve the overall income per capita?
By spending time learning all these various factors and facts, we can form qualified judgements on whether is it worthwhile to invest in particular properties in various suburbs within cities such as Melbourne or Brisbane.
We hope that this article helped you to form a better understanding and if you have any further questions, do feel free to join us in our upcoming webinar session whereby we dive deeper into the science behind effective suburb analysis for properties within the suburbs of Melbourne, Queensland & Brisbane etc.