Considering an Investment Property?
1. Make the commitment
A property investment must be a long-term commitment in order for it to be worthwhile, so the very first step is to ‘do the numbers’ in order to evaluate your budget, potential constraints, and future financial and personal obligations including the potential impact on family members.
Consider your future as far ahead as you can and assess your ability to maintain or improve personal income as well as your commitment and ongoing financial capability to continue to service the financial impact of the investment for a minimum of five to ten years, as that’s what generally brings premium results. You need to also make the commitment to ‘manage’ the investment – even if you outsource the day-to-day tasks involved including locating suitable tenants, collecting rents, paying relevant costs in rates and taxes as well as ensuring that the property’s repairs and maintenance are kept up to date.
2. Obtain Professional advice
An investment in real estate is likely to be significant in relation to your current financial position. We highly recommend speaking to an accountant who understands property investment and can evaluate if residential real estate is considered the most appropriate for your current circumstances, and who will consider aspects including rental return, maximum capital growth, and/or tax effectiveness.
If appropriate, we can help you find a suitable property and we can help you to secure finance to enable the purchase.
You will also need a solicitor/conveyancer and property manager on your team to assist you in coming to your decision.
3. Assistance from relatives & friends
4. Collate your information
5. Other things to consider
Consider choosing a property based on whether you feel like you could live in it. While it’s still a business decision, you also have to adopt the mindset that you could be selling to an owner/occupier down the track, which could be an emotional purchase for the buyer. If, however, you plan to rent the property, your decision should be based on what would appeal to the type of individual who wants to reside in the area. If buying in an urban area, you need to consider proximity to schools, transport, shops, and jobs and also enquire about any proposed infrastructure spending and development that may enhance or detract from the area.
Please speak to us if you are considering buying an investment property and we can assess your situation in a one-on-one consultation. Reach out and book a time here. We’d love to help you.