By Lara Anderson

For the past few years, stories about the property market and the current economic climate have been a common sight on the front pages of newspapers and websites. Until recently, this news has mostly been negative, but a new trend is beginning to show itself and things may soon be looking up.
An increase in second home ownership has breathed new life into the market and it continues to grow. A good proportion of this is said to be from those living away from the country buying holiday homes in the country, but there is plenty of interest from native Australians as well. But before you rush off to get your own piece of the action, there are a few things to remember.

Buy to Let?

If you are buying a second home in order to rent it out, there is a lot of work to do beforehand. You need to research current laws regarding landlords and tenants and make sure everything you do is legal and above board. You will also want to come up with a good idea of the type of person you want renting your property. Tourists and holidaymakers will only use the house for certain parts of the year, while a local family will want to stay put for the long term. Additionally, if you are choosing to keep the house for yourself, don’t forget to get it looking exactly how you want it to as soon as you can.

Do Your Research
Buying a second property is not something that should be taken lightly so make sure you get all your facts straight before you even think of exchanging money. Look at your current financial situation and discuss with your partner, if you have one, what you can reasonably afford. Once that is decided, take your time in choosing your second home. Your Mortgage can offer great guides to the ins-and-outs of buying a second home and you should always look at several different locations and, if possible, visit them more than once in order to fully make your mind up.

Be Prepared
Despite what some people may think, renting out or even just buying a second home is not a walk in the park. You will have to be prepared to have your purse strings tightened a bit or even find a way to increase your household income. As with any investment, there is always risk involved. A great deal of success within the housing market is down to luck as much as anything else, but you should still ensure you’ve done everything you possibly can to secure your investment as you go.

Plan Ahead
Building up a property portfolio is all about the long-term plan. You need to think in terms of years, not months, when it comes to getting the full benefits out of your property investment. Once you have successfully navigated the waters of the housing market once, you will feel more confident about doing it again. However, bear in mind that the nature of the property market is fairly fluid and one year’s success may not necessarily be continued into the next.
When all is said and done, there is always plenty of help out there when you need it, so remember to regularly check out property websites such as Property Update, and your local property guides in the newspapers. You never know what golden nugget of information you might glean from it.