In today’s volatile market, owning your first home can be a difficult task which requires further focus and judgment.
For the most part, analysing the market and the current economics of the financial climate is a rational approach that can help you attain an asset that is not only going to benefit you in the short-term, but create an appreciating asset in the form of a lifelong investment.
In short, every property you look into buying should be something you believe the market will reward you for.
If you’re looking to secure property and reap the rewards, here are 4 ways to get on the property ladder.
One - Research!
You have to do the research if you want to get into the property market.
Effective property research is about finding the right house for you. Not only that, but finding the right kind of home that you think people will buy.
Research the location of your desired property because the location of your property has economical values. Is the property too close to the city? Is it overly expensive? Is the neighbourhood close to any shops?
Analysing the economic sustainability of the area your property is in can help you to identify whether the opportunity comes with more rewards, or more risks.
Once you have researched an appropriate area you will need to answer further questions. Will you lease out the property to other people? Will you make your property into an Airbnb? Is there economic value in this property?
To sum up, there are many options you have as a property buyer that you can look into. Narrowing down your search is your best bet to help you find the kind of property that will suit you.
Two - Pay Off Your Debts
Eliminating debt is another way you can maximise your chances of a great cash flow because fewer liabilities means you are able to save more. Debt is a liability that can ruin your chances of getting into the property market.
Nobody likes debt, but if manage your budget well, and allocate your resources in an efficient manner, you will be able to make those savings breakthroughs that you need to invest in property.
The financial analysts at Metro Bookkeeping provide a unique insight in saying, “the equation is simple - the more debt you have, the less you will profit. When you are too busy allocating capital to pay off bonds, loans, or other liabilities to the lenders, you will struggle to profit. Getting your debt in order will save you money, but will also strengthen your economical aptitude.”
There are a range of apps on the market that can help with your spending control, allowing you to log your spending and document where your money has gone. This is an effective approach to control your spending.
According to the experts at Max Funding, you can effectively tackle debt by “taking control of your debt on paper. Work it out as much as possible to understand where your repayments are most valuable. If needed, consolidate your debts to pay them off quicker and save more money. It helps to have peace of mind when it comes to your debts, and proper planning can provide this peace of mind.”
The more debt you have, the less you control you have to diversify your portfolio. This problem is not exclusive to large commercial debt either. Student debt is another problem that can slow down your property goals. However, if you can get a handle on your debts, you will be able to return your portfolio to an improved state.
Three - Take A Long-Term Approach
Understanding how the market works, and how it behaves, will help you make sound investments, with sound investing actually fortifying your long-term profit. Investing pragmatically could see your returns increase.
Your personal investing philosophy should be about investing for the future. Making long-term decisions will help you see relatively stable returns.
The market operates in such a stormy fashion that tomorrow the market may be crumbling, but the sound investments you have made will help you sail through that volatility.
Such advice is applicable to sound real estate investing. Warren Buffet, investor and business magnate, said that, “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.” A lot of people want to sell quickly and do not know that there is an increased risk with just investing for the moment, you do not know if the market is going to perform well in the future unless you have made a reasonable decision you are happy with.”
The same advice applies to your property goals. Don’t make short-term decisions, instead, understand your plans will deliver long-term benefits and stick to this approach.
Four - Look Where The Market Is Heading
The markets will always fluctuate and change, and that’s the nature of the bullpen. As an investor, it is your responsibility to seek the best financial advice from mortgage lenders and financial professionals who understand how to value your investment.
Seeking sound financial advice can also solve problems such as whether property prices are falling, or whether it is wise to sell in the current climate. These types of questions are best suited for those who have authoritative knowledge on property investment, in the same way a realtor could assist you in your search for the best property you can get.
You will benefit if you understand where the marketing is heading, and how the latest trends are impacting property prices.
According to the home experts at DC Carpentry, “housing prices are influenced by the design choices and additions you make. We have worked with property owners who researched the market, noticed an upswing, and added renovation touches to maximise the value of the property even further. This is an effective way of increasing value.”
Essentially, choosing or deciding what time of property you invest in is based on whether or not that property has any utility. A rate of return or rate of investment is all based on your willingness to be expansive, as first property owners tend to be risk averse
Tomorrow housing prices could fall, and that will directly affect the return of investment of any property you own.
In the end, the decision is up to you whether or not you want to get into the property market right now.
If you are willing to put in the hard work to really focus on your property and think rationally, you have the potential to safeguard your future with a tangible asset that will increase in value over time.
Make sure you pay attention to detail, remove your debts, study the market and protect your investment.
Take these steps and the sky's the limit when it comes to your success.
Tim Frank Anderson is an Australian freelance writer and Sydney-based university student. As a business student, he has a passion for learning about global changes in business culture and specialises in entrepreneurship and innovation-related topics. When Tim isn’t at his desk, you’ll find him exploring National Parks.