Tips for First Time Investors

Over the long term, investing in real estate has proven to be a solid way to build wealth. Markets do fluctuate but over time property tends to appreciate at a steady rate and here in Geelong median prices have doubled over the past 7 or 8 years (better performing than the customary 10 years).

Making the decision to invest for the first time can seem daunting but sticking to these simple guidelines should make the process easier.

Firstly, make the decision with your head, not your heart. You won’t be living in the property so personal likes and dislikes such as internal decor should not be a factor. Secondly, do your research. There are some great tools online (, Domain etc) which provide suburb snapshots including median price, 10 year growth pattern, vacancy rate, average rental and average investment yields. Look for areas with solid capital growth which will appeal to quality (and potentially long term) tenants. Forums such as Reddit provide great feedback for buyers on most suburbs and towns. Ask the agent for a rental estimate on any property you are considering (our property management department provides estimates
on most of our sale properties).

And lastly, look at re-sale potential. Homes that appeal to owner occupiers as well as investors generally perform better as they will attract a wider market.

If you are looking to invest, we would be happy to assist you with any advice.

Until next week,

Nick Lord (Director)