Playing the Long Game in Property Investment: What and How?

When you are investing in a real estate property, you must know it is a long game! The more you are patient enough to hold onto the real estate asset, the better your returns will be.

Most sensible real estate investors in Australia might think of it as a known fact. But, there are still certain new investors who expect rapid growth overnight in the property value.

When you are doing Property Research Australia wide for the purpose of investment, you must know that the real estate market doesn’t offer quick ROI.

Planning on holding your property investment for just a couple of years is a rushed and rookie approach.

Therefore, let’s pen down what all the fuss is about the long game associated with property investment and how to play it.

What is the Significance of Playing a Long Game in Real Estate Investment?

If you are planning on securing your financial future with certain goals in mind, real estate investment in Australia is a smart move! But when you choose this path, remember that building wealth demands patience!

Let’s Consider a scenario: You consult your buyers agent for Property Research Australia wide. And then, through professional negotiation, you finally secure an investment property.

Many investors make the mistake of thinking that’s where the process ends. But in reality, it’s just a first step in building wealth. You cannot expect to reap high returns in just a couple of years.

As per the general overview, a good property in Australia located in a booming area will need at least a decade to experience a noteworthy appreciation. This is what a long game resembles when it comes to property investment in Australia!

Does that mean your investment will be useless for these years? Absolutely not! While you wait for your investment property to garner a good capital appreciation, you can generate passive income through rentals.

How to Strategise Property Research in Australia for Supporting Long-Term Investment?

Irrespective of whether you are buying a Self Managed Super Fund Property (SMSF property) or using other sources to fund your investment, if you want to play the long game, you must start putting in the efforts right from the research phase.

A buyer’s agent can help you in all these investment stages right from the beginning. So, what is the process of property investment? Let’s find out:

Do Your Math

The first aspect of finding the right property for investment is to investigate, determine, and understand the true aspects of your preferences.

• You must know the rental yield, cash flow, outgoing taxes, and other associated costs that are involved with respect to buying and holding onto a specific property.
• These factors are crucial for you to decide if the property is feasible for you to hold onto as a long-term investment.

Remember, the cost of the property finalised is just the first outlay of the total expense that you still have to make.

• For instance, your buyers agents conduct Property Research Australia wide and present you with a report.
• Based on that and considering your budget, you finally decide to buy an old property at a reasonable price.
• Now, there will be chances that the old property may require significant repairs or high maintenance costs over time. A one-time significant repair might be a reasonable expense. But consistent high maintenance would make it difficult for you to hold onto this property for the long term!

Therefore, strategising the property investment decision in Australia depends a lot on the maths that you do around it. This way, you will get an idea of how to prepare yourself or what you can bear while playing the long game in property investment.

However, when you work with buyers agents, most of the strategising part is taken care of by qualified professionals, thus making property investment easy for you.

Look Out for the Rental Yield

This is again related to maths but had to be pointed out separately because of its utmost significance in strategising a long game.

• If the rental yield of the property is high, you can charge high monthly rents. As a result, your debt, usual expenses or renovation costs can be recovered from it.
• When your property investment turns out to be your income stream, you will find yourself more flexible to hold onto it for a long game.
• Apart from being able to charge a good rent, you must also look out for the scope of increasing it every year.

Whether you seek to buy a Self Managed Super Fund property or are making a standard purchase, you can put it out for rent.

The only difference is that SMSF properties can’t be rented out to any related fund member or the trustees, whereas there’s no such restriction in a standard property investment.

Bottom Line

In case you need any help, talk to the buyer’s agent near you, and they can help you with comprehensive property investment services in Australia.