Top 5 Tips For Investing In Property
At Ray White, we understand how important it is to achieve your property goals. From first home buyers to seasoned property investors, Ray White is here to not only assist in your property transaction but also to support and guide you along the way. Here are our Top 5 Tips for those looking to get their property investment off on the right foot.
1. Find the right property
It seems obvious, but the success and failure of your investment could hinge entirely on the selection strategy that goes into finding your property. This is your chance to do research into a variety of different factors, some of these are listed below:
- Know your budget and stick to it. Seeking a pre-approval from your bank is a great way to define exactly how much you have to play with.
- Research the right neighbourhood. Look at future development applications and potential schools and infrastructure. By spending a little extra time researching the right area early on can save you both time and money down the track.
- Think with your head and not your heart. This is a financial decision, and it needs to be treated that way. Remember you aren’t looking for a family home; you are looking for a property with future growth potential.
- Understand the current investment climate, trends and future predictions. Broader external factors can have a major impact on your investments.
- Consult a professional. You can’t be expected to know all the ins and outs of a diverse, constantly changing property environment. By consulting a Ray White property specialist you can be sure you are getting the right advice from the right people.
2. Know your numbers
On top of budget it’s important to understand the variety of factors that could impact your investment revenue. Rental potential, rates, body corporate, general repairs and maintenance costs are just a few of the ongoing charges you need to keep front of mind when hunting for an investment property. Always ensure your budget doesn’t just account for your deposit and repayments, these ongoing costs have a tendency to sneak up on unsuspecting investors.
3. Think long term
Property is a long-term investment, and if you are looking to make fast money, property investment is probably not for you. Generally speaking the longer you can afford to hold on to your property the greater your chances become of turning a profit. But what does all that mean? Essentially you can’t simply rely and plan around your current situation. It’s important to consider career changes, growth within your family and changes in your financial situation before you commit to a long- term investment like property.
4. Get your loan structure right
There are more loan varieties today than ever before and finding the right one for you is key. Different loans offer different features like interest rates, discounts, payment options, interest-only and redraw facilities. Choose your lender carefully and make your objectives clear when choosing a loan.
5. Find a good property manager
A property manager is your saving grace in the hustle and bustle world of property investment. At Ray White, our property managers are your number one source of support and guidance through your investment journey. Your property manager can provide any advice you need, assist you with finding and keeping the right tenants, take care of maintenance issues and the day- to-day management of your investment. But perhaps more than anything else, your property manager can help you get the most from your investment, which at the end of the day is key.
Investing in property, especially for a beginner, can be a daunting process. It’s important to have the support around you to ensure you get the most return from your investment. Chat to a Ray White property specialist today about how you can start making your property dreams a reality.