It is already March and the 1st Quarter of 2016 is nearly done and dusted. Are you on track to achieving your goals for this year? Maybe one of your goals was to get on the property investment ladder (if you haven’t already). You may be quite overwhelmed with the amount of information that is out there and if you are looking at making the leap, you might not know where to start.
Here are a few points to consider:
How are you going to pay for it?
The most common way is to pay with your monthly salary and the first thing to make sure of is your job security. Has your office been laying off people lately? If you are going to be applying for a mortgage to fund your investment, the first thing they look at is your work history and current place of employment so make sure that is in good shape.
Do you have a down-payment?
Have you got some funds put aside for a deposit? Maybe a family member has offered to loan you the money. Make sure that you have at least 10%, and some banks will want more than that. If you are planning on using the First Home Owner Grant (FHOG) remember that they are designed for properties that you intend to live in rather than investment properties so you will need to have some sort of deposit saved up.
What do you know about investing?
How much do you actually know about investing? Do you have a strategy and do you know how to evaluate a property to see if it’s a good investment? Start researching because the more educated you are, the easier it will be to make decisions when the time comes.
Do you have people to help you?
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 When you build a team you will be able to put offers in on properties and start moving forward with your dream.
Are you ready to take the next step?
It can seem overwhelming when you start researching and realise just how much you need to know. Not to mention, it is a big purchase and a big decision. It is easy to get caught up in ‘analysis paralysis’ – you research and research and research, but don’t have the confidence to actually do it. Having the right people in place will help give you the push you need.
If 2016 is the year you want to get your foot on the property investment ladder, what steps are you taking to achieve your goals?