Determining the "why" or the "goal" in property investing is probably the least thought of consideration when signing a contract. However goal-setting means setting measurable goals. If you can't track your progress, what good is setting goals? What is the purpose of purchasing property? Is it to help fund retirement, residual cash flow, or perhaps to buy a property for the children while they study then to sell in the future?

Deciding whether to buy a property strong on capital growth or high rental return has always been the long time debate. This is where your goals are essential. If you are younger, then perhaps you may be a little more assertive in your investing and choose growth over rental return, but if you are nearing retirement, then you may need a regular income that will provide you continue to meet the needs of your current lifestyle.

Once you have decided what your plan for investing in real estate is, you then need to put a plan into action to help you achieve those goals. Your plan should be comprehensive and should outline what type of properties you would like to invest in, where, and how much you can afford. A good point is not to over extend beyond what you can afford. In saying that however, you may be able to afford a property sooner than you think. Simply consult a lending institution or mortgage broker to see how much money you can afford to borrow.

After spending many years in real estate management in Australia, my advice to potential investors is to invest in a product that has high demand. The last thing you need is a property that is vacant for many months a year.

When sourcing these high demand areas, always consider properties that are close to amenities, you should think like a tenant. Ask yourself "If I was a tenant moving into this potential property, would I like to travel half and hour to buy a bottle of milk?" Just because the price is low, does not mean it is a wise investment. It may be very difficult to find a tenant because it is too far from many amenities.