Many people will be taking it easy and hitting the beach this summer and real estate investors are no exception. The real estate market slows down over Christmas until about February so it could be the best time to negotiate a great deal. 2016 is right around the corner and a lot of us are thinking about what we can to do to make it the ‘best year yet’. If you haven’t jumped on the property investment bandwagon yet, you may be a little overwhelmed with the amount of information that is out there and you are looking at making the leap this summer, but you don’t know where to start.
Here are a few points to consider:
Can you afford it?
What have you saved for a deposit? What about other sources of money? Make sure that you have at least 10%, and some banks will want more. They also want to know where you work and will love to see that you have a secure job.
If you are relying on a First Home Owner Grant (FHOG) remember that more often than not they are designed for properties that you intend to live in rather than investment properties.
How much do you know about investing? What is your strategy and do you know how to evaluate a property to see if it’s a good investment? If not, then start researching and learning – the more educated you are the better off you will be.
Who’s on your team?
This is important. You need a lot of people around you to make a successful investor – Lawyers, building inspectors, buyers agent, financial planner, a property investment adviser, finance team etc. Build your team and start putting offers in on properties.
It can seem overwhelming to have to know all this information. Combine that with probably your biggest purchase to date, and you a likely to get caught up in ‘analysis paralysis’ – you research and research and research, but don’t have the confidence to actually do it. This is when your team will help push you over the edge.
You know what to do, how are you going to go ahead and buy an investment property this summer?