Learn how to invest
If you’re like most people, the idea of buying an investment property is both exciting and overwhelming at the same time. It’s true that understanding the steps involved in making an investment can be challenging, but that’s the case when it comes to learning anything new. The fact is that the ROI you can achieve is well worth the effort and education, persistence and having a great support team by your side will make the process a lot easier.
In 2013, RP Data and the Australian Taxation office published numbers that provided an overview regarding how the real estate investment market was doing at the time. The report revealed that under 8% (approximately 1.8 million) of Australians, owned an investment property and over 70% only owned one investment property. This is good news for individuals looking for investment properties. If this describes you, the following information will help you get started.
Determine Your End Goal
Prior to moving forward, it’s important to define your purpose for purchasing and investing. Are you planning on investing in one or multiple properties? Are you looking for an investment that generate quick results (usually questionable), or one that ensures long term capital growth? Having a clear vision of your end goal will help you avoid the distractions of other’s opinions and reduce confusion and procrastination. Even more important, it will save you a lot of time because you won’t end up spending hours researching property developers and checking out investment properties that don’t come close to matching your goals.
Take a Close Look at Your Financial Situation
Take note of your existing budget and expenses and determine the spare funds you have available before you immediately assume that you can’t afford to invest. Knowing the financial details will present you with an idea of the amount of cash available for you to invest.
Have a Loan Assessment Completed
Acquiring a loan when purchasing properties is a key step in the investing process. Being aware of your borrowing potential will present clarity when it comes to the price range that’ll be a good match for your financial status. Loan assessments can be processed through a mortgage broker or lender that understands property investing as well as tax implications. Additional factors that need to be considered include your credit rating, cleaning up your existing debts if applicable and reducing your credit card limits.
Where to buy your Investment?
You can search for properties online in your price range, looking for areas with tenant demand and good rental income potential but this can get really time consuming and frustrating. You can also check out local developers in your price range, in areas that have a potential for future growth. The right developer can be a crucial part of your investment success team. If you’re looking to invest in the Melbourne area or on the Mornington Peninsula, contact Peninsula Property Direct (0476 128 984) because we are that developer.