Property investment is always a solid idea because even if the property market isn’t in a good place when you buy you are pretty much guaranteed it will be in a couple of years’ time. If you can wait that long for a return on your money then property investment on cash flow properties can be something of a sure thing.
However it isn’t as easy as turning up to a property, buying it and then renting it out or flipping it for a positive cash flow because there are a few complications when it comes to property investment. As a result you are going to need property investment advice Melbourne.
Property investment isn’t just a good way of making some extra income it is also a good way paying less tax and keeping HMRC off your back. The reason why you need property investment advice is because you need to make sure you are getting the most out of your investment, after all you will have to spend a lot of money on a property and you want to maximise the profit to the fullest.
Still even with property investment advice you need to be careful because you need to be able to trust the advice you are getting, but if you can then you are at the beginning of what could be a very fruitful relationship.
Here is some advice when it comes to investing in properties which will potentially make you some positive cash flow.
Learn the basics
Firstly when it comes to investing in property which you hope will make positive cash flow you need to know the basics of the real estate market. So many people when they invest in a property fall for properties which are frankly never going to return a positive cash flow, all because the property looks nicer than other properties.
When it comes to real estate and investing in property you have to be more educated and know what factors will affect whether a property will make a profit or not, and not just whether you would like to live there. Check this page to find out the right real estate agent.
For example does the property have good transport links, is it in a respectable area and is the area about to boom and become up and coming? These are all the things you need to know before you invest in a property.
Net rental income
Before you can make a real return on your investment, like property appreciation, you should focus on net rental income – basically the amount of rent you need to make a profit on the property while someone is living there.
Net rental income is king when it comes to positive cash flow on your investment but you should also factor in gross rent.
Look to make about one hundred and fifty to two hundred per cent of gross rent to cover the properties repayments.