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 make 2016 the year that you turn your dream into a reality and join the 1.7 million Australians who currently own an investment property.
There are a number of aspects that need to be considered when looking for your first investment and a well thought out approach and strategy can help maximise your yield on the property. To prevent you making some common mistakes we would like to help you understand the most important steps towards building a successful investment portfolio.
Step 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, real estate data and investment reports. However never forget the value of professional advice from your real estate agent regarding selling conditions and market values in the area.
Step 2 – Check Your Finances
Don’t automatically assume that you cannot afford to own an investment property. Write a list of your assets including income and work out your expenses. This should give you a clear understanding on how much you can afford when it comes to your investment.
Step 3 – Get a Pre-Approval
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 you based on this figure and this will be crucial towards your decision of whether you are ready to invest or not. However be aware that applying for multiple pre approvals can be a bad idea as each application flags your credit file and this can lead to refused applications so be sure that you research your options before you commit.
Step 4 – Choose Your Property Type
Ask yourself what type of tenant are you looking to attract? What type of property would they most likely live in? If you are looking to attract students or young professionals then inner city apartments are the ideal choice. However if you are looking to attract a family then you should consider a property that is near schools, public transport and other amenities. One final and important factor to consider is that of maintenance. Always look for a property that is low maintenance as this will ensure your costs are kept to a minimum and make life much easier for both the tenant and landlord.
Step 5 – Set Milestones
It can be very easy to deviate from your initial plans as you start viewing properties. Remember this is an investment and should be seen as a business decision rather than an emotional one. Some great examples of milestones can be;
Step 6 – 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. Some aspects of a great real estate agent are as follow
At Burgess Rawson we tick all of the boxes. We possess over 40 years’ experience and give our clients undivided attention. The team at Burgess Rawson are extremely knowledgeable regarding all areas of Western Australia and our team of highly qualified real estate agents know the Perth market and can advise you on how to make the best investment for your budget.
Step 7 – Engage a Property Manager
Excellent Property Management is a crucial element to a successful investment. Like any investment or business venture something as simple as poor management can destroy the viability of the investment and lead to poor or no returns. Remember your investment is a business decision, You have spent a significant amount of time researching and ensuring the property is right for your anticipated return so don’t let the process fall apart at the end due to the decision to go with a low quality management agency or worst off trying to manage it yourself.
Burgess Rawson specialise in property management within the Perth CBD and City Fringe suburbs. We possess a strong commitment to all our clients and are acknowledged as one of the best service providers in the industry for both furnished and unfurnished leasing. Burgess Rawson offer a full leasing service, including rigorous tenant application checks and personalised tenant management, which means that when you entrust us with your investment, you will become a client for life.
Making the decision to purchase your first investment property is a big one but don’t give in! Remember if you approach the decision with a well-developed strategy you too can be one of the 1.7 million Australians earning a passive income from your investment portfolio. To learn more about what property would suit your investment plans and budget and start your journey towards becoming a successful property investor visit www.burgessrawson.com.au and contact one of our property experts today.