Investing in property for the long-term

house keyThe property market has been heating up in all corners of the country and normally when this happens a lot of investors look to make fast cash by flipping property.

However buying property for short-term capital gains can be very risky, even when it appears to be a growing market. If you’re looking to make money from property in a very short timeframe then you may be disappointed, especially if the market softens before you get a chance to sell.

Sure, some people can make quick gains with a bit of research, renovations and luck, but it’s generally not recommended, especially for the unexperienced.

For most, property is best looked at as a long-term investment. The real estate market will always go through cycles where you might question whether you should be buying or selling, but if you go into property investment with the mindset that you will hold onto the property for the long-term then any peaks or troughs will smooth out. Over time the real estate market tends to move in an upward direction and if you wait long enough your investment may end up being worth at least double what you originally paid.

Most people get into other investments, such as super and shares, with the mindset that they will stay in it for the long-term. Investing in real estate should be looked at similarly except that it has the added advantage of also offering a home and a lifestyle while you’re waiting for your investment to grow (or a home for someone else).

It’s still important to carry out your research when you buy a property with a long-term outlook, but when you do buy a property, don’t think that you will be able to flip it for a profit in a day. It may take 5 to 10 years before good returns can be made on an investment property.

If you plant seeds now you can reap the rewards in the future. If you’re looking to buy or sell in the Bacchus Marsh area then contact us at Professionals Arbee Real Estate.