Real estate investment is not a child’s play and should not be impulsive or emotional. So before you finalize your decision to buy a house, be sure to consider the following five questions:
01
Is the purpose of the investment clear?
If you do not have a clear purpose before investing in a property, the end result will not be too optimistic.

Solution: A clear investment goal is primary. Is the future ready to change hands for sale, to wait for appreciation, or to use rent? Defining these issues will help you formulate the right investment plan.

02
Is the rental rate good?
No matter how much you like this property, if it is left vacant, it will soon become your financial burden.

Solution: Do an investigation.
A senior financial planner, John Lindeman, said: “You can consult real estate management experts on the rental needs and tenant market in this area. If many tenants want to rent such houses, then this is a worthwhile investment. Real estate.”

He added: “At the same time, we can also understand the rental vacancy rate. Search the current rented houses and compare them with the total amount of rented houses in the whole suburb (data can be obtained from Australian Bureau of Statistics.) If the ratio is less than 5 %, then the rental market is very suitable for investment.”

03
Did you pick the right place?
Obviously, although in Melbourne, not all districts are equally hot. Some neighborhoods are more sought after, while others are not. Your investment house is best in the former, not the latter.

Solution: Make sure lots are what buyers and tenants want. If you want to rent to students, then try to rely on investment facilities in public transport facilities and educational institutions. If you are a family tenant, it will be more attractive if you are close to the school.

04
Is the transaction price reasonable?
Home auctions may be troublesome for investors, and if you don’t make adequate preparations, it’s easy to spend more.

Solution: Do more investigations. Mr. John suggested that investors can browse sales reports in various suburbs, or search online for the number of homes for sale.

If the number of homes for sale is less than the monthly average, the real estate market is relatively hot. As a result, not only do you have to pay excessive transaction amounts, but the future capital growth is also likely to be limited.

05
Is the housing structure up to standard and is the legal procedure complete?
When your investment house satisfies the above four factors, you must consider the final element – housing structure and legal procedures. Otherwise, you will not only lose money, but you will lose money.

Solution: Check before the transaction is completed. Conduct a construction inspection to ensure that the structure of the investment house is stable. You can also check with the local government agencies to find out possible problems in legal procedures, because these problems are likely to hinder your investment house renovation or development plan.

Investment in real estate requires meticulous research and calm decisions. Taking full account of the above five aspects can help you avoid many problems.

Investors investing in real estate, as well as investment stocks need to analyze the fundamentals, the most important is based on the analysis of the market and supply and demand, rather than ignore the long-term capital appreciation for the immediate small profits.

The population of Australia is constantly pouring in, and the demand for housing has also increased. Before investing, do a good job of investigating and understanding the movement of population, and then decide whether to invest in commercial real estate or residential, whether it is investment in an apartment or a villa and be targeted.