They’ll say you should go out and invest your cash, so you can make a profit in the long term.

It sounds great in theory but with so many options out there, where do you turn?

Do you head for the ASX or invest in bitcoin? Do you put money behind a start-up business that’s set to soar, or do you purchase an inner-city apartment and put it up for rent?

If you do invest in property, do you buy local or head to a holiday town? 

While it’s tough to know what your next move will be, putting your hard-earned pennies in bricks and mortar is one of the safest options for budding investors.

Here are four tips for finding the right investment property for you:

Decide on your objective:

Buying an investment property is a major financial decision so the first thing you should consider is whether you are looking for immediate rental returns, a property that can be negatively geared for your tax return or eventual capital growth.

Do you want to buy a fixer-upper, renovate it and sell it for a quick profit or would you rather get a tenant in and sit on the property until the market booms?

Remember, real estate is a longer-term proposition so knowing what you want to get from your property will help you to frame your search so that you’ll get the best returns.

Decide on the property type:

With inner city apartments, country acreages and seaside bungalows on the market, investors are spoiled for choice when it comes to real estate.

In general, independent houses offer better capital growth while apartments boast better rental yields.

Saying that, apartments often have extra levies to consider and independent homes can require hefty maintenance costs.

Each property type has its unique pros and cons so make a list to determine which one will help you achieve your personal finance objectives.

Consider the location of the property:

A property’s location should complement the dwelling type and objective you have chosen.

If you want to profit from an apartment, you should consider buying close to the CBD and if you want capital gains from a free-standing home, it might be worth looking into regional Victoria where house prices are beginning to boom. 

You should also lookout for planned infrastructure improvements that may affect the house price trajectory of the property.

As a rule of thumb, stay close to local amenities and public transport services if you want to lock in a long-term tenant and ensure your home holds its value.

Seek advice from the professionals:

At the end of the day, buying an investment property can be a great way to build your portfolio and create wealth.

What works for one investor, may not work for another so it’s important to give some thought to your individual goals before putting down a deposit.

Property investment can be tricky so don’t be afraid to ask a financial advisor or a hockingstuart property manager about your next steps.

They dedicate their whole lives to helping buyers make a return from their investment which means their guidance could help you profit in the long term. 

When in doubt, your hockingstuart real estate agent will help you to find the right investment property for your long term goals.

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