Are you thinking of getting into property investment? Maybe you already own your own home and want to grow your assets or maybe you are a young person still living at home but want to invest your hard-earned cash into something to something long-term.
What do you have to think about before you even consider investing?
How much do you want to spend?
Before investing in property it’s vital to have a thorough understanding of your cash flow. Make an appointment with your bank, so you know how much you’re able to borrow before you start hunting for properties. It is better to get the loan approved before you start looking so you don’t waste weeks or months of your time searching for the perfect place only to have your loan denied.
Don’t forget about expenses
Make sure you save for rates, insurance and repairs. When you buy your property, do what you can to prevent costly maintenance issues arising such as repairing things straight away when they are minor instead of leaving it until it becomes a big problem.
Do some DIY
Paying contractors to do renovations is expensive. You can save money and increase your profit margin if you can do at least some of the work yourself. If you have any friends or family who are handy with a hammer, get them over to help out.
Remember a rental property only has to be clean and functional. Don’t get distracted and buy a property because it has a stylish interior. It can be very easy to get caught up in emotions. While a home on a steep block may have a stunning view, it could be a nightmare to renovate.
Get a building inspection
Before signing a purchase contract, take the time to understand the building report to avoid expensive repairs down the track. Termites are one potential problem to watch out for.
What other things do first-timers need to be aware of when it comes to investing?