About Property Buying

4 Ways to Invest in Property
There are 4 ways by which an investor can invest in property.

These are:

  1. Direct
  2. Managed funds.
  4. Syndicates

Direct: Direct investment is usually made through residential, commercial, industrial or retail property. This form of investment carries with it great advantages, as well as attractive potential returns, but it also carries risks and disadvantages.

Managed funds in property: These types of funds offer many advantages over direct investment. While you have to pay someone to administer the fund and do all the work, use of the fund allows you to diversify your risk and gain exposure to a larger range of properties than you would through direct investment. The fees are higher than other managed fund investments because of the higher cost of buying a managed property.

Shares: There are many companies on the stock market that only invest in property, so you have a wide choice between the different types of property, such as retail, commercial or industrial.

Syndicates: These are relatively common and come about because people who want to invest in larger property investment cannot do so alone, so they come together to form a syndicate. It carries a greater risk than other forms of property investment, mainly because of potential problems with liquidity and lack of diversification.

Basic Rules
They say that the basic rules for residential property investment include the following:

  • Location, location, location. Make sure you find the right location.
  • Research and research. Arm yourself with all the information that you are going to require.
  • Manage and manage. Look after your tenants and look after the property.
  • Analyse and analyse. Complete the necessary analysis rather than buying based on emotion. You are now in business so make sure you know the rate of return you can get from a property and the valuations of those properties.

Things to Consider when Buying
Here are some important points to consider when buying a property:

  • Be clear on the vendor's price.
    Make sure you know exactly the vendor's price and expectations before becoming involved in the property.

  • Work with a good salesperson.
    Find a sales agent you are comfortable with and let them work for you in bringing up the buying options. If you have a good relationship with an agent, their advice will benefit you as you make more and more purchases.

  • Work with a good mortgage broker.
    A good broker will have access to the banks and financial institutions and can direct you to the best deal. This will save you a lot of time, effort and money with the various properties you add to your portfolio.

  • Watch government valuations.
    Government valuations are only a guide, but they don't reflect the market value for properties. They provide you with a benchmark but do not take them seriously.

  • Make sure you make a good offer.
    A good offer to an owner, where the conditions involved are few, will most likely have a better change of succeeding. Nevertheless you need to protect yourself, so consider some of the following conditions that need to go into an agreement:

    • That is subject to finance.
    • That is subject to sale of another property.
    • That is subject to solicitors approval and agreement including title search.
    • That is subject to a full builders report.
    • That is subject to a valuation.
    • That is subject to a Land and Information Memorandum, including compliance with local authority requirements.

If you work with a good realtor, buying a property should not be a great problem. Although the agent represents the seller, they still have a responsibility and must disclose any information required to influence your buying decision.

That is, they cannot withhold information or misrepresent any details of the deals, or act in a fraudulent matter.