Are you considering taking the plunge and buying an investment property, but don’t know where to start?
Many people are doing exactly this as a number of major headwinds start to fade and become a distant memory.
With the election behind us, changes to Negative Gearing off the table and interest rates at record lows, many see it as an ideal time to take the next steps.
Equally as many though, do not have a clue where to start.
Here are three simple things for you to consider to ensure you reduce the risks and hassles and get it right the first time.
Don’t Start with the Property!
Hang on a minute, but aren’t we looking to buy a property?
Yes, but starting the process by rushing out and looking at properties will only end up in tears.
I believe this is where many investors get it wrong.
They are lured in by a cheesy headline, like “amazing investment” or a flashy salesperson or seminar and have lost site of the big picture.
There is just so much that you should understand before you even start to consider a property.
Here is where I think you should start first…
Even if you do miraculously manage to find the deal of a lifetime, it is no good to you if you cannot finance it.
I would suggest speaking to a Finance strategist rather than just a bank or broker.
Preferably someone who deals purely with property and is ideally an investor themselves or at the very least understand more advanced strategies.
A specialist over a generalist and someone that finances cars, boats and caravans as well.
They should be able to not just chase a low interest rate, but also understand Offset accounts, Line of Credits and loan structures more favoured by an investor.
Once you have worked through the pros and cons and established a borrowing capacity, I would recommend establishing a comfort level and sticking to it.
A financial buffer should also form part of the overall strategy to ride out the lows.
Once all of this has been established, they can get a pre-approval in place so you are ready to go and can by with confidence.
Once again though……… Don’t rush out and buy the first thing you see!
Seek advice first!
The quickest way to get somewhere you have never been is to speak with someone who has been there and done it!
Rather than you being the one that makes a mistake that may cost you tens of thousands (maybe hundreds of thousands) of dollars, speak to someone who has come before you and learn from his or her mistakes.
I would be taking advice from a professional who has been investing successfully for at least a decade, preferably two.
I would definitely avoid the backyard professional or your neighbours Dad who bought a property once upon a time.
A good rule of thumb; If they are not wealthy from investing in property and been there and done it, don’t listen to their advice.
A Professional should be able to begin with the end in mind and work out why you are investing and what you want to achieve, before proposing a step by step strategy to assist you to get there.
By doing this, you are not leaving things to chance, but greatly improving your chances of becoming wealthy.
We can sense that the market is changing and with a number of headwinds out the way, people are looking to take the next step and are considering investing in property.
The vast majority will do it the wrong way around, jump straight in, and buy a property without understanding what they are trying to achieve.
The successful investors do things the other way around and put the property last.
They will take a step back to ensure they set a strong platform with finance, ensure they are within their comfort level, and have a pre-approval in place.
Before taking the next step, they will seek professional advice.
Looking to understand what the best use of their funds are from a trusted advisor, someone who is Known, Proven and Trusted.
Only then, will they execute their strategy and find a property that will widen their asset base and bring them one step closer to a level of financial security.
Are you looking to invest in property?
Which way will you do things?
If you’re looking at buying your next home or investment property here’s 3 ways we can help you:
Sure our property markets are improving, but correct property selection is even more important than ever, as only selected sectors of the market are likely to outperform.
Why not get the independent team of property strategists and buyers’ agents at Metropole to help level the playing field for you?
We help our clients grow, protect and pass on their wealth through a range of services including:
- Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! Click here to learn more
- Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property. Click here to learn how we can help you.
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