If you’re considering making moves into property investment, you might be unsure of where to start. The adage of “the secret to getting ahead is getting started” applies perfectly to property investment.
Just by reading this, you are kind of getting started, and although the pathway from the start line to investor status isn’t the same for everyone, there are a few general pieces of advice we can offer you that can help you get off the mark.
Here’s our top 5 …
#1 Be ready
We suggest answering a list of questions that look like this:
- Why do I want to invest in property?
- What are my short-term goals?
- What are my long-term goals?
- How will investing in property benefit me?
This process might seem simple, but it’s powerful. Your answers to these questions will frame your mindset and begin to make some outcomes clear to you. This set of answers will become the very early base of your investment strategy, and after all, no winning team ever gets to a grand final without a solid strategy on how to get there.
#2 Educate yourself.
You don’t need to be an expert investor overnight, but it’s worth understanding the fundamentals of property investment. Things like; what makes a good location, good property types, how to find details on future infrastructure spending, local rental yields, and other nearby property values.
Thankfully, you’re not alone in this – our experience with property investment means that not only can you lean on our knowledge we will also introduce you to other investment experts who can help show you the way to success.
#3 Budget and SAVE!
Money is what’ll get you your investment property – there’s no two ways about it – and you need to save yours. It’s proven that a budget is THE best way to save consistently, so make a spreadsheet (or use ours) and get moving.
If you’ve educated yourself to be an investor (see above), you’ll have a good idea of how much you’ll need for a deposit, so you’ll be saving for that, but don’t forget the other costs associated with buying a property! You’ll want to include things like stamp duty and building inspections in your budget and savings plan.
Your budget and savings should also consider the cash flow situation your property will put you in down the track. Have money set aside for potential vacancy periods, council rates and insurances too. Being able to cover some ongoing expenses will avoid a heap of stress later.
#4 Consider property options outside your backyard
This tip could be part of your self-education phase, but there’s a lot to be said about looking further afield for a good property to invest in.
As an example, if you live in Melbourne or Sydney, you might consider looking north to Brisbane for your investment. Buying in Brisbane instead could mean you get a house on a substantial block of land in the middle ring suburbs for the same price as an apartment closer to home. This is just an example, so do your research as this kind of decision has huge implications on your ability to grow your portfolio.
#5 Get your finance right
You know what you’re doing, you’ve saved your money and you’re looking for the right property in your price range. Now, you need to finance the purchase.
Any good investment strategy will include details about how finance for your property (or properties) should be structured. And, just like a good strategy, a good mortgage broker can mean the difference between a mildly successful investment and a wildly successful one.
If you’re considering your first or next investment property, speak with our Mortgage Specialists today. We know property investment and we’re here to help – call us on 1300 469 840 or send us a message and we’ll get you good to go.