Get started with property investing

Get started with property investing

The idea of beginning your investment property portfolio is exciting. But before you get started, there are some important questions you will want to answer, to be sure you’re on the right path.

The first time doing anything can feel daunting. And sometimes it’s uncomfortable to admit that you don’t have all the answers in an area which isn’t your specialty. The key is to ask questions, because knowledge is power - and a greater understanding will only help you to make smarter decisions.

Here are some common questions which our first-time property investing clients often ask.

 Can I afford to do this?

SHI_About_HonestyIntegrityCare

Just about everyone we speak with would love to invest in property. For some this is a possibility right now. For others, getting in this position will take a little more time and effort.

You want to be sure that your current financial circumstances will allow you to purchase your investment property in a financially comfortable and management way. Irrespective of the sort of property you want to buy, there will be certain financial requirements such as:

  • equity in your own home, or a saved cash deposit
  • stable employment and sufficient income

How much you’ll need may vary from person to person, and your current circumstances may determine what and where you buy. The great news is that property investing can be very affordable, when done correctly. It’s a matter of knowing how.

An independent specialist like a finance broker can often help you to find out whether purchasing an investment property is a possibility for you right now. While asking your own bank will only reveal a small portion of the many options out there. As part of our complete service, Simple Home Invest can help you to get in touch with an independent and qualified finance specialist to help you to investigate your options.

When should I invest in property?

How much you’ll need may vary from person to person, and your current circumstances may determine what and where you buy. The great news is that property investing can be very affordable, when done correctly. It’s a matter of knowing how.

An independent specialist like a finance broker can often help you to find out whether purchasing an investment property is a possibility for you right now. While asking your own bank will only reveal a small portion of the many options out there. As part of our complete service, Simple Home Invest can help you to get in touch with an independent and qualified finance specialist to help you to investigate your options.

When should I invest in property?

As the old proverb goes, when is the best time to plant a tree? 10 years ago! The same goes for property investing. So often we hear our happy clients say “I wish I did this years ago”!

The best time to invest in property is when you can comfortably afford to do so. You don’t want to be that person in 5 years time wishing they’d done it sooner. So if you are in the right current financial circumstances, and are motivated to create wealth for your future through smart property investing, then it’s time to get into gear.

What are the costs of buying an investment property?

There are common expenses which need to be taken into account for most investment properties. For all of our clients, we ensure that these are taken into account when researching and comparing different investment opportunities. Some common costs include:

  • Stamp duty
  • Loan repayments
  • Council rates and fees
  • Property management fees
  • Insurances (such as building and landlord)
  • Depreciation schedule
SHI_Jigsaw_02

Remember that many costs associated with your investment property are tax deductible. And the great news is that for many of our clients, because of their strong rent returns and that they have maximised their tax benefits, the income from their investment property more than covers the costs - putting more money in their pocket.

How do I choose the right property?

It can feel like finding a needle in a haystack. That’s why most property investors end up buying a property around the corner from home, simply because it’s familiar. How it will perform as an investment however is a whole other question!

The key to choosing the right investment property is to be unemotional about it. Remember it’s purpose: it’s job is to help you to create wealth. It isn’t your dream home, or anywhere you need to picture yourself or your own family living. So the growth prospects, supply and demand in the area, rentability and affordability are much more important than the number of kilometres from your place, or colour of the carpet.

So if it’s not about emotion - it’s about information. That’s why our property research is such a critical part of our complete service - because it helps our clients to make smart decisions, to choose locations with strong growth drivers, and properties which offer value for money.

There seem to be so many options. Which one is right for me?

SHI_TownHouses

Buy and hold? Renovate? Old or new?Off the plan? Unit? House? Townhouse? The options seem endless because they are.

The right option for you is actually all about you. To answer this question, you need to know what you want to achieve from your property portfolio? What are your financial and lifestyle goals? How long until you want to retire? And how much can you comfortable afford to spend on a property?

That’s why answering these questions is exactly where our service begins. Because it’s only by knowing what is important to you, and understanding your goals, that we can find out how best to help you - and help you find the right option for you.

Please follow and like us: