You’ve made a decision to be a part of the property scene which is great news. However, the returns on the investment may take time. Buying property can be a big aim and likely successful endeavour, but it is a lengthy process. It starts from ground level of research, until reaching the target of finalizing the deal.

Step 1: Research is Your Priority

Prior to fantasizing about your future property, you need to put your efforts into research. A lot of people see this as a critical step. However, many people decide to get straight to the purchase phase without doing proper research. Buyers agents in Sydney can be a great help for such endeavours.

Importance of Research:

Property is an investment that has to be made for a long period of time, so decisions made today cannot bite you in the future. So, learn to ask the most appropriate questions before investing anywhere.

- What’s the local market like? 

For example, the area that one plans on investing in, what does its property market look like? Where does the area stand in terms of value? 

- What’s your budget? 

There's more to it than just the property price. Even the stamp duty, insurance, as well as maintenance fees must be included in that.

- What type of property are you after? 

Whether it’s a residential property, a retail property or anything else. It’s important to note that each property category has its own specialized risks, returns and cost structures.

Step 2: Choosing the Type of Investment One Wants to Make

Once you are done with your research, the next thing to do is to set parameters that are measurable. Have a plan in regard to what you want to accomplish with this investment. Do you pursue a consistent rental cash flow? Or is it more the capital appreciation and then one day selling for a profit?

If you set your goals in the beginning, the other factors regarding your investment strategy will adjust to your set goals. Consider the following:

- Capital Growth: Will you be investing in a region where the capital growth is very slow?

- Rental Yield: Do you want to buy a unit that will provide you with a continuous income stream based on rental fees? What rental return do you expect to make per annum?

- Long-term Strategy: What are you planning to do with this property later on and when? Are you going to keep the property for a few years or will you sell it for profits?

Step 3: Property Selection—Finding the Right Fit

So, you’ve put your research and goals in order, it is now the time to start hunting for properties. But don't just rush for the first one that catches your eye. Determine how each property fits into your investment plan and evaluate its prospects in terms of becoming more valuable.

If doing a property inspection, ensure that you:

- Investigate the parts of the property: Check for potential issues that might be expensive to manage such as plumbing, dampness or other issues. Don’t get distracted by fresh paint that might be hiding issues that are bigger and much more expensive to repair.

- Assess the property for appreciation in the future: Even if a property seems very appealing now, what are its chances that it will be in demand tomorrow? Seek out those areas which have the potential to grow in future. 

- Think of the rental potential: If you are planning on leasing this unit out, try to take into consideration what your would-be tenants are after. A location close to public transport, shops, schools, and green spaces can enhance the appeal of a property tremendously.

Step 4: Negotiation–Never Take the First Offer Presented to You

You've identified the property that you want to acquire. The next thing to do now is to start the negotiation.

Negotiation is the all-important aspect in property investment. Don’t be hesitant to negotiate as it’s all part of the game.

Step 5: Settlement- The Last Stage Additional Information

During the settlement process:

- Hire a solicitor or conveyancer: You would also need a solicitor or a conveyancer who will handle the legal documents and settle everything for you.

- Organise your finances: Ensure your loan or mortgage has been obtained if necessary and the money required for settlement is available and ready.

- Prepare for the future: Look at how you plan on handling the property from now on. If it’s a rental, a property manager will have to be hired. If the property is to be resold, it would require proper interior designing and renovation.

Conclusion

Buying properties does not happen in a single step, it actually is a process. Researching about a property settlement is easily the most important part along the process. As an investor, you have to make sure that each step is well thought out and informed. With the right planning, you will be able to succeed in your goals regardless of the hurdles.

Most importantly, do not forget to remind yourself of the fact that investment for purchasing property isn’t a short-term task. Take things at your pace, and do the research that is required. Once you complete the steps provided above, you will be on a successful path at building an impressive property portfolio.