No matter how big or how small an investment is, there is always a risk. If you’re planning to commit to your first property investment, then, here are some tips for you. In this article, we will walk through areas such as:
- Planning your investment goals
- Budgeting for expenses
- Locking in your investment
1. Spend some time learning about property investment
In fact, here are heaps of resources out there that talk about property investment. However, you will need to evaluate carefully if the advices are applicable to your personal circumstances.
- Books, audiobooks
- Podcasts, YouTube videos,
- Seminars, webinars, etc.
- Finance professionals
2. Write out your goals
Undeniably, writing out your goals helps to better structure your investment plans. Questions you need to ask yourself before committing a property investment include:
- What is my desirable long term capital growth?
- Do I invest in a property as leverage?
- What is my current income level?
- Am I investing for a tax deduction?
3. Get your finances (and relevant documents) together!
4. Budget for investment expenses
- Adding extra on top of your rental income
- Strata and council rates
- Maintenance and repair cost
- Wear and tear costs
- Property management costs (if you live far away from the property or would like someone else to manage it)
- Vacancy costs (if there is no tenant renting your house)
Additionally, to know more about investment expenses, you can read this article here.
5. Find an investment
- Location: Is it in a growth suburb? Has it grown in rental demand?
- Historical Performance: How much growth has the property previously had?
- Infrastructure: Is the property close by to schools, public transport, shopping centres, hospitals, etc.
- Condition: What condition is the property in? Will you need to replace things?
- Potential: Can I add anything to this property that will increase desirability or profit?
6. Give it a boost
Disclaimer: The information provided is general in nature and does not constitute financial advice. Please speak to us for recommendations on your individual circumstance and requirements.