1. Work Out Your Budget
Before investing in property it’s extremely important to have a thorough understanding of your finances. Start by listing out all of your assets and incomes, then work out your expenses.This will give you an idea of how much money you will be able to invest.
Next, head to your bank and ask them for a pre-approval of your investment loan – this way, you will know how much money you can barrow before you start hunting for properties.
(LOOK OUT: When you budget, make sure you account for insurance fees, rates, and general repairs. )
2. Set Your Goal
What are you wanting to achieve? Are you looking for fast capital growth or are you wanting a property that you can hold long term? During boom periods, it’s much easier to renovate properties and turn them over for a quick profit. In slower economic times, it may take many years to achieve the same growth.
For you to achieve your goals, you must first work out what exactly those goals are, and set yourself a deadline in which you want to achieve said goals by.
Take the time to create a plan – break the plan up into 10 years, 5 years and one year and work from there !
3. Know Your Stuff
Use the tools available to you to make an informed decision.Talk to your local realestate agents, utilise the internet and ask family and friends who have already stepped into the investment property market. Knowing the market can be key to making the right choice.
4. Buy In A Growing Area
Try to choose an investment property in an area that has growth. Choosing a place that has a strong demand for rental accommodation is key – think of places close to uni’s, shopping centres, schools and transportation.
5 . Buy With Your Head
Look for liveable – not luxury. Always remember that a rental property only has to be clean, safe and functional.
Be sure you weigh up the pros and cons, as its easy to get caught up in feelings when hunting for a home. Try to see the bigger picture!
If you have any questions about investment properties, feel free to give one of our friendly team members a call!