Is Real Estate Investing Right for You?
Investing in property is simply another form of investment. Buyers can invest directly by purchasing property individually, or indirectly by investing in a managed fund or timeshare. Although real estate agents may understand the property market, prospective buyers should still seek independent advice, because property investment may not be right for everyone.
What to Know Before You Buy
Don't fall for pressure-selling techniques and high-pressure seminars
Some sales people can be extremely persuasive and persistent. They often use gimmicks like offering you a "once in a lifetime opportunity".
Determine your overall financial plans
Think about what you want to achieve financially and how soon you want to achieve it.
Understand the risks involved
All investments carry risks. Make sure you are comfortable with the risks associated with a particular investment.
Decide whether or not you need professional advice. If you're dealing with a financial advisor make sure they're licensed.
Investing directly or indirectly
You can invest directly or indirectly in many assets, including real estate, through a managed fund. Time-shares are a type of managed investment.
Do your homework
Find out as much as possible about any investment you are making. Make sure you really understand the pros and cons of choosing a particular investment asset. Weigh the advantages and disadvantages against your financial goals.
Consult with your accountant
There may be tax issues to consider that you may not be aware of. Once you've decided to take the leap and purchase investment property, be sure to read and keep all documents you receive about your investment. If your asset is being managed by someone else, make sure they keep you updated on all pertinent information. Reputable investment managers will be happy to answer your questions and will expect you to take an interest in your investments.