The Golden Rules Of Property Investing

As our economy grows and a new cycle of property starts there will be fortunes made by a number of investment groups.

A good property investment advisor should focus on your financial and lifestyle goals with a long-term focus.

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But if history repeats itself, many property investors won't get the financial independence they deserve, so here are the time-tested golden rules of property investing so you have a roadmap to help you through the next property wave.

1. It's about the property

During the boom, many investors forgot the age-old property fundamentals of buying the best property they could afford in a proven location. Instead, they got sidetracked by glamorous finance or tax strategies; and some lost out.

3. Property is a high growth low yield investment

While the argument about capital growth or cash flow will rage forever, there is no doubt in my mind that the only way to get true riches from real estate is through capital growth. 

The major factor affecting capital growth in property values is the relationship between supply and demand.

3. Buy Property that is in continuous strong demand

Not all properties in a given suburb will make a good investment or have similar capital growth. Even if you never intend to sell it, for your property to appreciate strongly it will need to appeal to a wide range of owner-occupiers who make up the vast majority of buyers.