Are you looking at becoming a property investor? You’re not alone, there are just over 2 million Property Investors in Australia*! While property is regarded as one of the safest long term investments there are many risks involved and it’s not a decision to jump into. iThink’s Sales & Marketing Consultant, Dane Phillips has some tips for getting started in Property Investment.
DO YOUR RESEARCH
Attention to detail is key in investment planning. If you try to take shortcuts or skip researching, you could make some costly mistakes. It’s important to choose an area which has strong growth and rental demand so in-depth research of the suburb is essential. Ideally, you want to invest in a suburb where the level of rental listings and vacancies are low, and demand for rental homes in the area is high. Look for properties in areas where there are at least 30% of local residents being renters, to ensure a steady stream of potential renters. Also, buying a property near schools, shops & public transport can make it more attractive to renters.
You need to know how much you can afford before you even start considering property investment. It’s vital to understand your current cash flow so you can grasp how much you can afford. Sit down and list all your assets including income and expenses, doing a budget will help with this. It’s a good idea to get some advice from the experts so chat to your bank or mortgage broker. Getting pre approval will also assist the process of purchasing your first investment.
SET YOUR GOALS
It’s crucial to have a clear idea on what your goals are and why you want to get into property investment. In order to be successful, you must first set goals and define deadline of when you want to achieve them. Property Investors generally invest in property to secure a financial future or to be free to do what they want, when they want so you need to understand what you are looking to achieve.
BUY WITH YOUR HEAD NOT HEART
Look for livable not luxury. Remember, this investment property is most likely not your forever home. Don’t let your emotions get ahead of you if the property is not clean, functional and in a convenient location. With any property that attracts your eye make sure you make a list of pros and cons to make sure this is the perfect pick for you.
ASSESS YOUR RISK PROFILE
Everyone has a different risk profile and your own personal attitude toward risk will impact your real estate and wealth creation journey. It’s important that you formulate an investment plan that suits your risk profile, as this will help you cope with pressures of investing in real estate without losing sleep at night.
Education is key to your success as a property investor, so it would be useful to attend some property investment seminars and courses or talk to a trusted Real Estate agent to gain an understanding of the basics of property investing.
*Statistic from Profile of the Australian Property Investor, 2016. CoreLogic
Dane Phillips – Sales & Marketing Consultant
0435 839 033
Driven and dedicated with a desire to succeed in everything he does, Dane offers unprecedented commitment and advice to anyone looking to buy, sell or invest. With a dream to build a lifestyle for himself and his family, Dane started out as a young investor himself and already has an impressive portfolio of property behind him.