If you’re looking for an asset that’s consistently increased in value since the early 1900s, look no further than investing in property.
In fact, “the average growth on residential property over the past 20 years has been in the region of 10.5% per annum with an additional 10% per annum possible if you include your rental income,” says Francois Joubert in Become a Master Property Investor in 90 Days.
But, to profit from this valuable asset, you’ll need to consider what your goals are when developing your property investment plan.
Here’s why you need a property investment plan
According to Joubert, considering what your goals are starts by answering the following four questions:
Your answers to these questions will help you determine the type of property you should look at.
For example, “new developments and cheap rental apartments require very little time and will supply you with a constant income easily. Repossessed property, on the other hand, requires more work at first and put down more cash, but thereafter it’s smooth sailing,” explains Joubert.
And that’s why you need to consider all these things before you decide what your property investment strategy will be.
You also need to keep your goals in mind here. For example, if you want to keep management to a minimum, it might be worth only investing in bigger properties that bring in more rent per property. But if you want to maximise your rental income and don’t mind managing more properties, you can invest in a few bachelor flats instead.
So write down your goals and decide on a strategy. “It doesn’t matter if this changes with time, but you need to know where you want to go before you get started,” advises Joubert.