Investing in a property is a big decision of life, thus, it is recommended to do prior research in order to get better outcomes. If you are thinking of investing in property, here are some of the vital tips you must consider in attaining the financial goal:
- Know your budget
If you are planning to invest in a property, then it is extremely essential to first set out a clear budget. Once you set the budget, ask your bank for pre-approval on your loan so that you know the total money you can borrow before you start hunting for properties.
- Seek Advice
Consider all the available options carefully before you decide. Seek Advice to reputed financial advisor, accountant, or look for reliable conveyancing service provider, in order to structure your loan correctly.
- Get an inspection of property
Hire a professional building inspector before you purchase a property. Prior to sign the contract; look at the building report to avoid expensive repair at a later stage. Therefore, if you are purchasing an older property, always make sure that the building is following all safety standards and maintained properly so that it will not create any major impact on overall profit and cash flow.
- Research locations
Buy a property in an area where there is a strong demand in rented accommodation. So research the capital cities and its suburbs thoroughly before taking any major decision related to property investment. Each property has its own growth cycle due to the economic climate, local supply and demand, and consumer confidence.
- Be Objective
While purchasing property, use your head not your heart. As an investor, you must look for a property that is well presented and potentially strong, enough for good capital growth and rental return in future.
- Know the current status of the market
Talk to local and real estate agents to know the status of the property rates and growth rate in accord to a future point of aspect. You can also check out the recent sales to get an idea of what the property is worth.
- Beware of cost
After buying a property, you must be aware about the ongoing costs such as land tax, council rates, property management fees, insurance and strata fees (if applicable). In addition to this, you have to pay for monthly interest charged on your mortgage.
- Save big by doing some of the maintenance work by yourself
There is no need to hire tradesmen for minor renovation of your investment property, which is a costly affair. Get your hand little dirty in maintaining the property by yourself and increase your profit margin.
- Employ a Property Manager
A Property manager can help you to place a tenant, undertaking the reference checks and ensure you find the right person. They will keep you updated with the current market rent for your property, and help you to achieve the best possible Return on Investment.
- Think long term
Always keep one thing in your mind that the property is a long-term investment, so you should not rely on the property pricing that are going to rise within a short span.