Property investment isn’t a step to be taken lightly. It’s a major decision that could have a huge impact on your financial future, so it’s no surprise that many first time investors find themselves feeling overwhelmed when the time comes to make the big decision. Fortunately, there are experts available to help you make the right choice and plenty of sound advice out there that can guide you toward the best possible decision for your circumstances. Start out with these simple tips to ensure that your property investment is a success from the start.
- Get expert advice. Because property investment can be a complicated process to undertake, it’s crucial to receive guidance from specialists who know exactly how it’s done. Companies like Think Money are ideal for this purpose. They can sit down with you to look closely at your financial circumstances, deal with any outstanding debts that could hold you back, and help you to select the ideal property for your investment goals and needs.
- Do lots of research. Aside from the tips you’ll receive from expert advisors, you should also seek out as much information as possible through your own research. Keep up to date on the latest property trends and forecasts, read books on the subject of investment and property, and take courses or seminars aimed at boosting your knowledge around investment. This research will help you to form a well-rounded understanding of how the market works.
- Know your limits. It’s important to understand exactly what you’ll be taking on before you embark on the path of property investment. Before you purchase a property, be sure of exactly how much work will be required to get the returns you’re aiming for. Is the property run down and in need of lots of TLC? If you’re short on time and resources, that may not be the right property for your needs. Be sure that the property suits you perfectly, and don’t invest until you’ve found it.
- Understand the ongoing costs. Once you’ve worked out the cost of the deposit and mortgage on your investment property, you’ll need to calculate the ongoing costs involved in the maintenance of the house. Property management costs, insurance, rates, and other fees will all need to be factored into your budget and thoroughly accounted for so that you can get a realistic picture of your projected returns.
- Shop around for the best loan rates. Different banks and lenders offer a range of options when it comes to home loans and mortgages, so take the time to shop around and do price comparisons before you make a decision. Your advisor should also be able to help you make decisions involving your mortgage, but make sure you’re aware of all of your options before you settle on a lender.
- Get the location right. The success of your property investment will depend on a range of factors, but location may be the most important of all. The safety of the neighbourhood, proximity to schools and amenities, the state of the local economy, and the scenery and natural features of the area will all play a significant role in the rental prices or future sale price you can expect for the property.
For more information, please visit