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Are you making your first real estate investment? Early decisions will have a significant impact on your long-term performance as a real estate investor. There are numerous options available. How are you going to fund your investment? Where will you put your money? How would you attract tenants to your property? Who will be in charge of maintenance and repairs? There can be many such questions you might have in your mind and the experts of real estate Thomastown can help you find the answers. However, before you get ahead of yourself, consider the following question:
What is the ideal initial investment: land or house?
In comparison to other investments, land does not require much of your time. It could be a long-term passive investment for you, explains the professionals of real estate agents in Craigieburn. Furthermore, you may be able to purchase smaller plots of land with just cash. Property taxes, insurance, and upkeep charges are not prohibitively expensive. Negative gearing benefits are also available to you. Because there is less competition, you can obtain a better deal. People on a tight budget can buy today and construct later. This assures that they will not be priced out of the market in the future. Land prices can rise quickly, even if their value increases slowly. Some people purchase land with the expectation that the government would rezone it shortly. The land value rises after it is rezoned, and they can sell it to a developer. You have the option of doing whatever you want with the land. You can either sell it to a contractor or create it yourself, depending on the situation.
Land can be a risky purchase if you don’t plan to build on it. City councils modify zoning from time to time, and the changes may have a favourable or negative impact on your property. If you’re going to buy land as your first investment, attempt to buy land in a capital city, which will give you more security over time. Also, from the start, have a specific plan for the property and be aware of the costs involved with your investment.
You have a lot more control over prices when you buy a single-family home, but you also have a lot more responsibility. You may not be required to pay dues to a homeowners’ organisation, but if the roof needs to be replaced, you will be responsible for the cost. Whether you use a property manager or not, you are responsible for anything that happens to the estate or the land. One advantage of owning a home is that you may factor in the value of the land as well. Land rises in value over time, so even if the house itself is no longer in demand, you may be able to sell the land to a builder many years down the road.
Each option has substantial advantages and disadvantages. Your abilities, hobbies, and travel ability will all influence your decision. Buying a house may be the ideal option for you if you enjoy renovating. A unit may be more ideal if you desire to be a hands-off owner and buy in one of the capital cities. If you want to invest in real estate but don’t have the cash, buying land may be the best option.