Tips for first time property investors, what do I need to know?
By | 31st Aug 16

There’s a lot to think about when buying property and for those wanting to leap into property investing. Gaining as much information as possible will be a great start – if you’re overwhelmed by all the reading you have to do, feel free to speak to one of our consultants who can guide you through the daunting process.

Understand your finances – A lot of people talk about managing your finances, but we like to tell our clients that it’s equally important to understand your financial situation. We think having a deeper understanding of what funds are needed for a comfortable investment helps with the process. An investment should be an asset and not a burden to your life.

It’s ok to shop around for a loan – It’s common to think that the big banks will have the best deals. We find shopping around with a great mortgage broker can really make a difference to your loan. (If you’re having trouble finding a great mortgage broker, let us help you with our network!)

Keep in mind ongoing costs – When thinking about your budget and cash flow, take into consideration the ongoing costs needed to maintain an investment property. We recommend having a pool of funds for outgoings like rates, insurance, property management or any repairs for that property. Having a separate savings account for incidentals and bills is always a great idea to stay on top of your budgeting.

When choosing an investment property, we advise that you make your choices based on due diligence. Buying an investment is different to buying as an owner occupier. Keep in mind things like potential rental return, owners corporation fees if you’re buying in a strata or competition in the area.

 

For more information on how you can turn a property purchase into a successful investment, speak to one of our consultants today. Your first consultation is obligation free and won’t cost you a cent!