With property prices in major cities continuing to skyrocket and sustained growth in property value in many regional areas, property investment and development is an increasingly attractive option for those looking to grow their wealth. For those just starting out in property investment, it can be quite daunting and hard to know where to begin or how to avoid costly mistakes. Fortunately, there is plenty of help and support available to assist you in effectively growing your wealth.
The Basics
There are two options for growing your wealth in property, investment and development. Of those two options, development is by far the riskier option. It requires significantly more capital to get started. However, it also offers the biggest pay offs if you get it right. Property development encompasses a wide range of activities, from purchasing land and building a single house all the way through to developing large residential buildings or other facilities. As a property investor, generally you will be purchasing land with an existing house, building or facility attached to it, which you can then rent out.
Speak to an Expert
Depending on your budget, experiences and resources, either option or a combination of both could be right for you. It’s definitely worth speaking to someone who does not have a vested interest in your decision for expert advice. The Pherrus Team will be able to provide you with valuable information to help you grow your wealth through property and have a solid understanding of domestic and global economic factors that may affect you and your investments. The Pherrus team have forged strong partnerships in the Finance space and can assist to secure competitive finance to support your investment.
Do Your Research
Whatever your decision, you should still undertake extensive research into the area you are planning to buy. Make sure you’re aware of any state government development plans that may impact your specific location or area. The last thing you want is to spend millions on a new development only for it to be turned into a new highway a few years later. Likewise, you don’t want to pass up on residential property in a quiet suburb and find out later that it is the site of a new multi-million-dollar education centre and that property prices have now doubled. Look at past trends, similar areas that might be a few years ahead and what they have done as well as any plans for new infrastructure in the area. If you are worried that you don’t have the right information, then you can speak to Pherrus about this as well. We are well placed to help you achieve the most value possible from your investments.
Finance
Most investors don’t have enough capital lying around to invest or develop outright. Even if you did, it wouldn’t necessarily be the smartest financial decision to do so. This means you’ll need to consider financing options for your investment property purchase or development plan. Shopping around is important when considering loans to find the best deal available and make sure you’re in a financial position to meet the demands of any loans you take out, although what also should be considered is how fitting the loan is towards your overall business & personal financial goals. We can help you determine what loan product would be the most suitable with a view to helping you build wealth.