Top tips for buying your first investment property
There’s a lot of doom and gloom out there at the moment, about how hard it is to find or afford your own home, but getting an investment property may not be as hard as you think.
With the increase in house prices over the past couple of years, you may be surprised by how much equity you have in your home. If you’re looking to buy an investment property or build a whole portfolio ready for retirement, you should consider looking into this option.
Of course the very first thing you will need to do is to talk to a financial advisor or mortgage broker to see if it’s right for you. If it is, then here’s a few tips to help you buy your first or next investment property.
Set your Strategy
Have a clear plan of what you want to achieve by having an investment property, and set clear goals around this.
What is your budget?
Will it be negatively geared or cash flow positive?
Where will it be located?
At this stage, speak to a broker/lender to get pre-approval
Become an expert (or hire one)
If you haven’t already been keeping an eye firmly on the market, this is the time to start.
Take note of supply and demand, recent comparable sales and prices in areas of interest. Speak to local experts.
If you can, visit the suburb/s at different times of day and night to build knowledge of the geography and demographic and consult the local council about planned developments that may impact your market.
Due Diligence, Inspections and insurance
This is perhaps the most important step to avoid disappointment. Do all of your title, land, structural, zoning checks.
Have professional inspections done for building and pests and any others you may find useful based on your findings.
Decide which insurance company you will go with.
Find a good team
It’s a really good idea Ito have a trusted legal expert, building inspector, accountant, lender in the buying process but don’t leave property management as an after thought.
Finding a good property manager can make or break your investment success. It’s important to find someone who knows the area, the market, the property, is trustworthy and treats your investment as if it was their own.
Investing in property can be a pretty overwhelming experience.
If you don’t have the time or skills then please contact us and we can help you with the entire process. At Realty Road we understand how important finding and maintaining the right investment property is to your future success, which is why we make things stress free for you. Whether you are selling your property, buying a new one or need help to manage your investment property, we’re here to help.
