Five Hot Tips on Buying Your First Investment Property
Imagine being wealthy enough so you can retire early and let your assets do the hard work for you while you enjoy yourself.
Absolutely not. We believe that Australia is the best country in the world for growing your wealth, and property investment is the single best way to increase your assets and your wealth.
Here are some hot tips if you are buying your first investment property.
HOT TIP 1 – Be clear about your goals
Here are some key questions to consider:
- Why do you want to invest? For example, do you want to build your wealth by acquiring a number of properties and other assets, or do you want assets to give you a retirement income?
- Is this a short-term strategy or part of a long-term plan?
- Will you investment property be positively or negatively geared?
HOT TIP 2 – Write down your budget
Here are some key questions:
- What is your annual income and expenses?
- How much will you have to borrow from a financial institution?
- What will your mortgage cost you each month?
- What other expenses will be involved in an investment property, e.g. management, insurance, rates,
repairs and maintenance, renovation?
- What rental income will you receive?
- How much can you save each month?
Be realistic about what you can do. The aim is to pay off your mortgage as quickly as possible so you can acquire more property and other assets.
HOT TIP 3 – Do your research
What area/s would you like to buy in?
- Check out rentals in that area – what rents are being asked (and achieved) for what types of properties?
- Is there a strong demand for rentals in that area? Is it close to transport, schools, infrastructure?
- Is it a desirable area to live in?
- Have prices been moving upwards in that area?
HOT TIP 4 – Choose your advisors carefully and work closely with them
- Do you have an accountant?
- Do you have a financial advisor?
- Do you have a real estate agent?
The ‘right’ advisors have knowledge and expertise that can help you choose the best property, advise on an appropriate mortgage, make sure you get the best returns for your dollar, show you how to legally minimise your tax – and generally help you to get on the road to wealth creation more speedily. Good advisors are worth their weight in gold.
HOT TIP 5 – Believe in yourself.
If you believe you can become wealthy, then you can. If you believe you can’t, you can’t.
To be wealthy you must first believe you can.
Want more tips? Join our WealthCafe or talk to one of our client managers about how you can kick start your wealth creation strategy.