The 10 key things every property investor should know

Summarised from an article by Michael Yardley, Smartcompany, July 15, 2013

Michael suggested that new investors ask themselves the following 10 questions before buying:

1. What do you want to achieve?
   A regular income stream or a capital gain.

2. What is your preferred strategy?
   i.   Buy a property below its intrinsic value
   ii.  Buy in an area that has a long history of strong growth
   iii. Look for a property with a twist - different but of value
   iv. A property where you can manufacture capital growth through redevelopment or renovation
   v.  A mix of the above

3. What type of property?
   House, unit, apartment or commercial property

4. Should you buy something old or new?
   Benefits exist for both and should be weighed

5. Where should you buy?
   Short-term and long-term considerations

6. When should you buy?
   There are economic cycles and seasonal cycles to consider.

7. What can you afford

8. How will you set up your purchase?
   This has important tax, risk and return implications.

9. Who should you ask for help?
   Choose carefully amongst the many professionals.

10. Should I take advice from my friends and family?
    No, unless they are long-term successful property investors

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