Written by Stephen Lovison
Have you been considering investing in property for some time now? Have you read all the books, magazines and reports religiously searching the internet for your ideal investment but can’t commit?
If this sounds familiar, then the team at Burgess Rawson would like to help you turn your dream into a reality and join the 1.7 million Australians who currently own an investment property. Making the decision to purchase your first investment property is a big one but don’t give in!
So what do you need when buying your first investment property?
1. Know the market
Property investors should have a clear understanding of the market at all times. Get online and familiarise yourself with market trends and real estate data. However never forget the value of professional advice from your real estate agent regarding selling conditions and market values in the area you’re interested in.
2. Check your finances
Don’t automatically assume that you cannot afford to own an investment property. Meet with your bank or mortgage broker and discuss the amount you can afford to invest. They will advise you on the amount they can lend which will be crucial towards your decision of whether you are ready to invest or not.
3. Choose your property type
Ask yourself what type of tenant are you looking to attract? What type of property would they occupy? If you’re after a service station investment with a secure lease to a global company such as BP or Shell, don’t purchase a property in the back streets in the middle of nowhere. Different properties have different net returns, so be wary with your choice to make sure it fits your financial needs.
4. Engage an agent
Buying an investment property can be stressful enough so dealing with an agent that is not on your side can be the feather that breaks the camel’s back. For this reason you must look for an agent that has your interests on their side and works towards your interests.
5. Engage a property manager
Don’t go it alone when it comes to ongoing management of your property. Property management is a complicated and high-pressure job. If you think you will save money by managing your own property, wait until you have your first problem tenant, or unreliable tradesman. Remember your investment is a business decision so don’t let the process fall apart at the end, ongoing support will be key to your success.
To learn more about what property would suit your investment plans and budget and start your journey towards becoming a successful property investor feel free to contact us.