The Beginners Guide to Property Investment
Getting started with property investment? Here are 3 tips for success!
Perhaps you've been thinking of investing in property but haven't been sure of exactly where to start? Let us help out.
Property investment is naturally an extremely popular choice for investors. According to the Reserve Bank of Australia, out of 2 million Australian investors, about 70% own property and 20% own two or more.
So, considering this, let's start with 4 questions you can ask yourself before you decide if investing in property is the right fit for you.
1. What is your why?
What are your financial goals for investing in property? Are your financial goals short or long-term? In other words, are you wanting to gain income from the rent over the next few years or do you want the value of your property to increase in the long-term? Or maybe a combination of both?
No matter what your objectives are, clearly establishing your goals will help you to decide on the best investment property for you and create a personal plan to reach your goals in the timeframe you want to.
2. Money! How much do you have to spend?
Buying and managing an investment property can be costly. Other than the actual cost of the property, some of the other costs include:
Think about what your budget looks like and how much you want to be spending on an investment property.
3. Location, Location, Location! Where do you want to buy?
Do you want a house near where you live now so you can maintain it and keep an eye on things or interstate or in an upcoming suburb which may increase your returns in the future?
Remember, it's always important to research the location of any potential investment property. Things like proximity to public transport, healthcare, food and retail facilities, childcare, education, and other amenities can make a big difference to how much rent you end up charging. This is where your budget is key to work out to determine the suburbs you can afford.
4. What type of property do you plan on buying?
Generally speaking, there are three main types of investment properties for your consideration that have different benefits and may suit your circumstances:
Now, here are 3 tips to help ensure your first investment property process runs smooth!
1. Let's understand your property profile
Consider who will be living in the house and what they would want from it? What kind of people live in the local area? Are there good schools nearby so you can market it to a young family? Do these people have the money to afford your home?
There’s no point in buying an investment property only to find out that that type of property isn’t in demand for that suburb. That's why it's vital to do your homework first and have a target audience in mind.
2. Let's not make it personal
It’s completely understandable if you are buying your dream home, why you would buy with your heart instead of your head. But when it comes to purchasing an investment property, remember that you won’t be living in it so don’t let your emotions get in the way of your decision or your offer.
3. Let's find the right property for you
A perfect investment property is different for everyone. Research through current opportunities for you to gauge an idea of what’s available and what’s within your price range.
If you’re ready to invest in property, seek advice from a financial adviser to help you manage the costs and ensure your strategy matches your circumstances.
Investment properties come with tax implications, additional income to manage, as well as risks that need to be considered. In Gregory Hills, Gledswood Hills and Oran Park, we have specialist financial advisers who can help you make the right choices.
If you would like advice on your property investment plan, get in touch with WCG today. We’re here to help your financial dreams become a reality.
If you need any help, don’t hesitate to reach out to us for a chat.
DISCLAIMER: This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice.