Posts Tagged ‘property investing’

Property investing advice – knowing who to believe

Friday, February 24th, 2012

If you are anything at all like me and look to facilitate your property investing education through reading books, internet sites and glossy articles then having the ability to recognize what property investment information is worth looking at, what's worth taking on board and what's worth taking positive action on is an important talent to have! In this post we’ll present a few factors worth considering:

1. Authorship.

The 1st question one should ask is ‘who is writing the manuscript ‘? In some scenarios, especially online, the essay writer may remain incognito. In a sitation where the writer is unknown it is really difficult to attribute any form of credibility.

If the writer is identified then you should consider whether the author has any education or experience in the area that they're writing about. It’s astonishing what quantity of folks are ready to give an unsolicited opinion on something they know little of and try to pass it off as fact! Now, naturally, there are some fabulously informed property investors who share their thoughts and information and it is beneficial to make sure you know who is who!

Take a look at the author’s background on the topic, their experience and their net reputation.

2. The location and purpose of the essay.

The next thing to consider is where the manuscript is found – what sort of book, mag or site is the article on? If it's a website then is it a credible stories site, well-known property investing web site or is it a personal blog? Often the position of the essay will also give you some indication of the object of the article or the incentives of the writer. So is the writer simply providing helpful info on their special area or are they selling something and so have some form of special interest. Of course, there isn't a lot wrong with somebody selling their own products and this does not always mean that they're not providing good information, it’s just you are best to realise where they are coming from in order that you can make your own judgements on the value of the information and level of objectivity.

3. Sources of info

Where a writer has used ‘facts ‘, stats, graphs or other kinds of ‘truth ‘ in their article then it's very important to think about whether the author has quoted their sources of information so that you can also make judgement on the factual basis of this info.

Property investing is definitely an area of interest for many who would like to create wealth through property investing. Investing money and time in your property investing education is extremely recommended, however do take a while to assess the data that you read.

Find out more information on property investing and enhance your property investing educationat the Everyday Property Investing website.

The pros and cons of proprety investing and investing in rental property

Monday, January 30th, 2012

Investing in property is a very popular means of wealth creation, particularly owning rental property. This article assesses the positives and the negatives of investing in property, specifically owning rental property. Whether you are new to investing in property or you are just considering taking your first steps, knowing the pros and cons can help you with your decision making.

The pros of investing in rental property

Cashflow/Income – having a regular cashflow coming in from your rental property is great. The rental income helps you to pay the mortgage and in some cases, if your property is positively geared, you can even be making a profit! Having someone else contributing to your wealth creation is a great strategy.

Growth in value – This is really one of the main reasons people invest and where there is significant money to be made.

Taking an active part in determining your future – Given that your financial future is of most interest to you – it’s pretty obvious that your interest and actions will have great impact. By investing in property you are building a retirement lifestyle for you that will fulfill your dreams of travel and relaxation rather than scrimping and saving to get by.

The cons of investing in rental property

Periods of vacancy – there will be times where you property sits vacant and you’ll need to be able to cover all of the costs.

Dealing with bad tenants – You may have seen media shows which portray tenants that have ruined a rental property. Although rare it can happen. Tenants can sometimes not pay the rent, can not look after your property, can break and ruin parts of your property and can refuse to leave! It’s not always plain sailing!

Big money – property is not normally an insignificant outlay. You need to have a reasonable amount of cash or equity to get started, which holds some people out of the market whilst they try to find a deposit. Also, owning rental property means that your money is tied up in an investment which is not highly liquid, so if you need your money fast then you may find yourself having to wait.

Market fluctuations – just as capital growth in a property can be fantastic for your, market fluctuations in the opposite direction can be not so great. Although not an volatile as the share market, property can have it’s ups and downs.

Clearly there are both pros and cons to investing in rental property and whether you decide it’s right for you depends on whether the benefits involved outweigh the risks. If this is the case, then you’ll find that property is a fantastic way to increase your wealth.

Everyday Property Investing is Australia’s top property and investing podcast and provides valuable information and education for those getting starting in property investing. Everyday Property Investing offers property investing education and property investing checklists to get you going.