Investing in the property market has and continues to be the preferred choice investment vehicle for most people in Australia and around the world. People are constantly hearing about real estate success stories on either TV or at friends dinner parties. Property is a tangible product, it’s something we can touch and feel so its no surprise it appeals to so many people. But, does it’s popularity make it something everyone should get involved in?
Lets have a look at the top 3 questions you need to ask yourself before buying your first investment property:
Are you mortgage ready?
Unless you are one of the lucky few, in order to buy and own a property you will need to obtain a mortgage. The average mortgage term is anywhere between 20 and 30 years meaning that for the next 20 to 30 years you will have to meet the monthly bank payments. With so many spending temptations all around us this requires a great deal of discipline and commitment.
Are you mentally prepared?
When done with the right amount of research and due diligence investing in property can be extremely fruitful; It without a doubt has been for thousands of people across Australia. Quiet often however, despite our best efforts and desires things don’t always go according to plan. Whether it be a change in personal circumstance or general market conditions owning a property can often become a burden. Considering the cost associated with buying and selling property and the possibility of selling in a down market this is a burden that most people often have to live with for extended periods of time.
Are you prepared to give up your day job?
Investing in property is not only popular but often times extremely addictive and very lucrative. So lucrative in fact that many investors start off with one investment property and find them selves owning a portfolio of 5 or more in just a matter of years. Their part time hobby soon turns into a full time job in which they become sophisticated investor involved in a wide range of property investing activities.
Investing in the property market can be a life changing experience but it certainly isn’t without it’s own unique challenges. Each investor is different but as long as your are prepared to push through the tough times, investing in property remains without a doubt one of the best and safest methods of achieving financial freedom.