Frequently Asked Questions

I'VE SEEN STORIES ON THE TV ABOUT TENANTS DESTROYING PROPERTIES. IS THIS LIKELY?

I think the reason I haven't, personally, experienced this problem, is because I don't deal with the "bottom end" of the market. I minimise this risk by not dealing in the cheapest and oldest properties, using experienced property managers and securing tenant protection insurance.  

WHAT IS BETTER, OLD OR NEW? 

That depends on the price and the age of the property. New offers greater tax deductions, lower maintenance and the builder's warranty. When you consider how suburbs develop, with the new subdivisions on the perimeter of the suburb, old will have the better location. 

DO I NEED TO BE EXPERIENCED TO BUY AN INVESTMENT PROPERTY? 

No, but obviously, the more experience the better. I believe that experience is knowledge and everything else is just information. Unfortunately, the important lessons in life don't come from a book, they need to be learned. 

Guess why many companies tell you that you need an expert to avoid those millions of pitfalls in where to buy, when to buy, what to buy, the structuring to use, what finance, what lawyer, taxation and property management? Yes, you will need them. 

Investing in residential property is not "rocket science." It is simple, but because of wide spread fear of making a mistake, it is not easy. 

Accept that you will not get it 100% right first time. Do you know anything worth doing that you can do perfectly first time? Practice makes perfect? In fact, imperfect practice makes perfect; experience is the great teacher. The best way to do that is to buy an average property at an average price in a growth market. 

CAN'T I DO IT MYSELF? 

Yes, you can do it yourself if you are happy to have a longer list of mistakes than otherwise might be the case. It would help if you were able to spend 24/7 on keeping up with investment trends. 

WHEN IS THE BEST TIME TO INVEST? 

Generally, yesterday! Naturally, you want to be "locked in" to a rising market, but, when the market is not moving consider the words from the late John Paul Getty III, then one of the world's richest men, "When the economy is bad and property values are falling and everyone wants to be a seller, buy well located real estate and hold onto it. Don't sell, whatever the critics, the cynics and losers might say. That way, you will end up very wealthy." 

HOW LONG WILL IT TAKE ME TO SEE THE RESULTS FROM MY INVESTMENT? 

Understand, firstly, that no one knows the answer to that question. If you are looking for profits within 12 months then property is not the answer. If you are happy to rely on 200 years of history and are prepared to take a long term view there is nothing more certain than reasonable residential property. 

WHAT SORT OF RETURN WOULD WE EXPECT PER YEAR? 

History tells us that property should appreciate at 3 to 4% greater than inflation. 

HOW DO I DETERMINE THE BEST PLACES TO INVEST? 

Only invest where the population growth is positive. 

SOME ADVISORS ARE CLAIMING THE PROPERTY MARKET HAS PEAKED? 

If you are a long term investor, why be influenced by short term fluctuations? Those who understand property know that it is the nature of the beast to lie dormant for years and then suddenly jump in value, generally, when you are about to give up. As always, it is the patient who reap the long term rewards.

Article Source: http://EzineArticles.com/?expert=Neil_Handley

About the writer -----------------------------------------------------------------------------
Neil Handley graduated as a Bachelor of Economics and Accountant. After some 20 years as a stock broker Neil turned to property development. He then acquired a controlling interest in a property development company listed on the stock exchange and became CEO. He has been involved in developing residential subdivisions, industrial subdivisions,shopping centres, office buildings and medium density residential dwellings in Sydney's north shore, Northern Districts, Parramatta and Liverpool areas and on the Gold Coast, Queensland. One office building was sold to the AMP for $25ml. Neil's company advises on building wealth via property.
Go to http://www.specialstrategies.com .

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