Real estate is a very egalitarian investment option. It doesn’t matter how many university degrees you have, where you went to school, who you know or where you come from. You don’t even have to laugh at the bosses jokes.
Provided you make the optimum selection your investment property will keep appreciating at a fast rate of knots. Capital growth doesn’t discriminate.
I have witnessed people on modest incomes build wealth through astute property selections. On the other hand I have seen people with high disposable income fail to capitalize on their situation through either not investing or choosing the wrong real estate investments.
The combination of at least a mid-range disposable income and astute property selections will equate to financial independence or an early retirement if desired.
Easy entry into the real estate industry means the market place is crowded with players all trying to sell their product or service. This makes it very confusing for property investors wanting to build a quality portfolio.
To add to the confusion there is now a multitude of property investment vehicles for people to choose from.
Apart from the obvious i.e. poorly located properties or buying into a high density sub-division, there is now many other types of low grade real estate that is being marketed to unsuspecting investors.
These types of investments are a one way ticket to the poor house e.g. holiday properties, serviced apartments, department of defence housing, low quality overseas properties, student accommodation.
Any real estate that has a limited pool of buyers will not achieve the optimum capital growth.
It is never too late to start investing. Based on past performance of the Melbourne market and provided the right selection is made a five year window is sufficient to return a healthy profit.
Making a sub-standard selection is not easy to rectify. Buying and selling real estate incurs substantial transactional costs. Having to offload a property because of a poor selection will invariably result in a loss.
Seeking independent advice from a real estate professional that specializes in buying property will repay the investor many times over.