The Information Gauntlet

Building real estate wealth can appear to be a daunting goal for those who are entering into the market for the first time. Understandably some of the challenges can be directly related to the volumes of information available on the internet. If you don’t know what to watch out for then it can be hard to determine if the information being provided is accurate and current. 

Knowledge is the first critical investment I suggest that you place your time and energy into while building your deposit to secure that foundation asset for your portfolio.

Start becoming familiar with the industry terminology, what it means and where reputable information can be sourced to help you become comfortable with all things real estate.

Victoria, Australia: Useful Links as at 2020

Property and Land Titles

Consumer Affairs – Housing

Planning Department

Consider learning about:
  • State Legislation & Regulations
  • Title Searches
  • Land Zoning
  • Property Caveats
  • Conveyancing
  • Council Regulations
  • Annual Property Sales Data
  • Quarterly Sales Data

You also need to establish what type of real estate investor you want to be. Are you going to focus on Commercial or Residential property? Do you want to become a landlord or will you buy, renovate and flip the homes for profit? Perhaps you are interested in buying vacant blocks and becoming an owner builder. All of these different approaches come with certain demands for targeted knowledge. 

Real Estate can be a sound investment for the savvy minded individual. It can also become an expensive mistake if you haven’t done your homework. When you get to the point of actively searching for that first investment, try not to fast track or cut corners on executing due diligence:

  • Pest, electrical, plumbing and structural inspections
  • Pre-checking with the council about any future plans for the area or restrictions for development on the lot
  • Get insurance quotes to establish the levies for the area

This article is by no means intended to be an exhaustive list of the information you will need. I am merely encouraging you toward the path of gaining a foundation of understanding before you pull the trigger on your exciting first purchase.

Author: Sherrie Lee

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