Investing in property is a sound choice, as it is relatively safe and gives good solid returns. Returns are reaped from capital gains over time, and rental income. However, you need to have a good understanding of the types of property to buy and the right price to pay. It is also important to ensure you don't pay too much for the property.
There are 6 crucial steps for investors to follow to ensure success in residential property investment. They are:
- Picking a good location
- Choosing a house or a unit
- Paying market price, not more
- Financing the purchase
- Checking the vacancy rate
- Using the Australian tax system to maximum benefit.
This article elaborates on the above steps and provides a checklist to help you assess whether you should buy a particular unit to invest.
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