When investing in property, it pays to do so wisely. With interest rates at record lows, combined with competitive incentives from certain lenders, now could be a great time if you are considering a jump onto the property ladder… but there are some things for you to consider first.
It is important that you have a plan in place before outlaying a substantial deposit and committing to a long-term investment. This basic guide to property investment for beginners will help you make the right choices when it comes to your first investment property. We would be happy to talk you through this and any questions you may have.
Be smart about your search
Finding the best property for investment purposes is a matter of assessing the future value of a property. You can get a better understanding of the long-term return on investment in a particular area by looking at historical data related to real estate sales. However, financial data offers just one portion of the big picture.
Location is always a major factor when determining the value of a property. Tenants are generally looking for a place to live in an area that has good infrastructure, local schools and an abundance of nearby attractions. Make sure that you choose a location that caters to your desired tenant when you’re shopping for an investment property. For example, you should look for a property near schools and parks if you want to attract stable and reliable families who will tenant the property for a long period.
Plan ahead
Stay one step ahead in the planning process before you make a purchase. Get your finances in order before you start the search. Popular neighbourhoods across Australia have competitive investment real estate markets, so you have to be ready to act when you happen to find a suitable property.
Consider obtaining a pre-approval if you need financing for the purchase.
Thinking ahead isn’t just a matter of planning for the predictable expenses of owning an investment property. There are many expenses related to maintaining such a property that can’t be easily calculated. For example, fixing a sudden electrical problem can set you back financially. Be sure to set aside funds for unexpected repairs and other ongoing costs before you purchase a property.
Have a good team around you
A great saying is “don’t worry about the price of a shovel when you’re digging for gold”, which means having a trusted team of experts who can guide you through this process. Your first investment property purchase can be daunting, and so it’s normal to be nervous. It needs to be a considered decision, but with the right information and the right support, most people find that they enjoy the satisfaction of their move into property investment and look to grow a portfolio which helps build their wealth over time.
If you’re considering moving into property investment, you may benefit from talking to us – we’ve helped many others take their first step, and we’d be more than happy to help you, too.
