The Keys To Successful Property Investment
There are no guarantees in life, and real estate investing is no exception. However, with careful planning, expert advice and a sound approach to finances, you can minimise the risks involved in buying an investment property and be well on your way to growing your portfolio.
Our job at Power of Property is to work with you to devise an investment strategy that meets your goals both now and in the future, is designed around your current and potential financial position, and enables you to establish a property portfolio with a minimum of effort on your part.
Read more below about some of the keys to making a smart property investment.
Understand your financial position
The first step towards successfully investing in property is to have a complete picture of your current financial position, combined with an understanding of the costs associated with acquiring and maintaining an investment property.
You need to be able to measure your current expenditure against your income and assets in order to have a clear picture of how much you can afford to borrow. In addition, you should also set out a budget for how you will mange your finances going forward; in so doing, it’s important to make sure that it is realistic and that you are able to adhere to it.
Understanding your financial position also extends to gaining pre-approval for a home loan. Pre-approval gives you a clear indication of the maximum amount you’re able to borrow, simplifying your search for a suitable investment property as you won’t be wasting time looking at properties that are out of your reach.
As part of our service, we will guide you through the process of applying for an investment loan, including helping you to prepare the relevant documentation.
Have clear financial goals
One of the first things we do when we start to work with an investor is to establish what your financial goals are. These can vary quite significantly, depending on your age, job, current assets, family situation, approach and attitude to risk, etc. Everyone is different and so will want to achieve different things from real estate investing, but no matter what your current circumstances are, you need to have a clear picture of where you want to be in the future if you are to formulate an achievable property investment strategy.
We work with you to define the clear financial goals that will underpin your real estate investing journey, as well as a strategy that helps you to attain them.
Choose an investment loan that suits your needs
Being able to manage your ongoing finances so that you can continue to afford your investment property is key, and this usually starts with the loan or mortgage that you take out.
There are a range of loans available specifically for property investment in Australia, including fixed rate, variable rate and interest only home loans, and we can advise you not only which of these will best suit your circumstances, but also help you to get the best available product and most competitive interest rates.
Don’t waste time waiting for the ‘right’ time
In our experience, the best time to start growing an Australian property portfolio is almost always now.
Waiting for the ‘right’ time to invest more often than not means that you are simply putting off buying an investment property, effectively reducing the ultimate value of your investment. This is because in the long run, it is the length of time that you hold an investment property rather than the time at which you purchase it, that determines whether or not it makes you money.
Our advice is always that you should begin on your property investment journey as soon as is practicably possible.
Choose the right investment property
It can be difficult to undertake independent research and collect data on potential suburbs, towns and cities that might be a suitable location for a property investment, let alone find out about all of the different properties within these areas. Likewise, understanding the potential for growth of an area, its demographics and what the council has in mind for the district.
All of this means it can be difficult to know where to look when you are searching for a suitable property in which to invest.
That’s where Power of Property comes in. We undertake all of this research on your behalf, and have access to comprehensive reports and data that help you to make a fully informed decision about the sort of investment property you should buy, where it should ideally be located, and how much you should be prepared to pay.
Hire a good property manager
In an ideal world, you want your investment property to take up as little of your time and energy as possible with regard to its management and maintenance. The value of your investment becomes diminished if you have to spend unreasonable amounts of time looking after your property, undertaking repairs, finding tenants, etc.
Hiring an effective and efficient property manager will mean that all of these issues are taken care of for you, and while it is an additional expense (which is, nevertheless, tax deductible), the outlay is generally worth it in terms of alleviating some of the hassles that can come with an investment property.
Power of Property works with highly experienced and professional property managers all around Australia, and we can quickly and simply arrange this service on your behalf.
Talk to Power of Property about how to make the right property investment
If all of the above has helped to answer some of the questions you might have about how to invest in real estate and what it takes to grow a property portfolio, but you want to find out more, then please don’t hesitate to get in touch.
You can call Michael Lawton on 0407 785 560 or Danielle Charlton on 0411 268 795, or you can book online to arrange a free personal consultation to assess your needs and help you get started on your first (or next) smart property investment.