Investing+in+Property

media type="custom" key="3879751"media type="custom" key="3894041"

A property is something owned by someone. A property can be anything; you can own a book, a factory or a laptop. But, in this case we are talking about housing as a property. These can include houses, apartments, a factory, an office or even a mansion. And we sometimes buy these properties to rent out to other people for an investment. This is what we mean by property investment.
 * __PROPERTY INVESTMENTS __*** By Chris and Paris [[image:MyHero[1].jpg width="282" height="301"]][[image:MyHero[3].jpg width="273" height="312"]]
 * __WHAT IS PROPERTY?__ **

We invest in property because it is a way to get money. Also it is a good idea for:
 * __WHY DO WE INVEST IN PROPERTY?__ **


 * An extra income
 * Getting more money for your retirement or savings
 * For long-term growth over a 20-30 year period.


 * __PROS AND CONS OF PROPERTY INVESTMENT:__ **
 * __ Pros: __**
 * There is always going to be demand for housing or living areas.
 * Investing in housing is good, since you can sell the house if you are losing money.
 * You will be getting rental income which could help you pay for the mortgage on the rented home or your own home.
 * __ Cons: __**
 * Being a landlord can be stressful and time consuming regarding to things like damage to the house and problems with tenants.
 * You may struggle to pay for the mortgage on the rented home with your own houses’ mortgage as well.
 * There is no guarantee you will gain money.


 * __ WHAT MAKES A GOOD PROPERTY? __**
 * The property is located within 10km of the CBD
 * There are various schools in the immediate area.
 * The property is located near major shopping centres, sporting centres or a beach.
 * The property has on-site parking and an internal laundry.
 * The property is architecturally unique.

HOW DO YOU PAY FOR A PROPERTY AND WHAT ARE THE COSTS? __** - Stamp duty - Building/ pest inspections - Connection fees/ electricity, water etc. - Valuation fees - Insurance - Solicitor fees - Rates - Repairs
 * __ [[image:property_home.jpg align="left"]]
 * Generally, if you intend to live in the property, you pay 5% of the purchase price as a deposit. If you intend to rent it out, you pay 10%.
 * Other costs before and after the purchase of the property includes:


 * __

WHAT IS A MORTGAGE? __** Basically this means, that a mortgage is the amount of money you have to pay back to the lender (like a bank) after you borrowed money to buy your house.
 * Definition:** A mortgage is a security matter for a lender to secure a loan that is paid by the client over a series of monthly periods according to the current interest rate.

If you have researched your property, the area it is in, the value of the property and thought about the type of property that could effectively gain you money with minimal loss, property investment is a great way for you to gain money. But, you have to make sure you don’t rely solely on your property as a source of income, since the market could change and you will lose money. Also, you need to remember that property invesment isn't a short-term asset. It can only be successful if it kept going for several years such as 20-30 years since selling houses and buying houses quickly will only cause you bankruptcy. It is good to have several assets in different markets (diversification) and this will lower your risk of losing money.
 * __OVERALL, IS PROPERTY INVESTMENT EFFECTIVE? __**