Property investment shouldn’t be complicated, but many people get it wrong because they skip the most important steps at the beginning and jump straight into looking at houses.
It’s true some steps aren’t fun and can be daunting at times, but you don’t have to do it alone. We have nearly 40 years’ experience in building and investing here on the Sunshine Coast so let us help you with your investment journey.
Below are my most important tips for property investors. If you follow these steps first, your investment journey will not only be more fun, but it will be more successful too.
One of the most important things you need to do up front is research different property investment locations. If you don’t choose a location with high growth potential, nothing else matters because your investment will fail.
There are lots of things to consider and here are a few things to look out for:
On top of these important things, all Dwyer Property Investments locations must also adhere to strict criteria that factor in market trend data such as migration and population growth, demographics, rental yields and capital growth, in addition to critical infrastructure development by local, state and federal governments.
Above: Harmony Estate on the Sunshine Coast - An appealing location for owner-occupiers
You’ve probably heard the saying “time in the market beats timing the market”. Maximising returns from an investment property is less about buying in at the perfect time and more about how long you’ve spent in the market.
The sooner you buy your first investment property, the more time you’ll have to build equity with property’s natural long-term growth. As a general rule, property values double every 10 years or so.
Remember to “buy with your head, not your heart”. You should always do the sums on rental income, mortgage repayments, tax concessions, and depreciation to make sure you understand all the financial elements of your property investment.
Loans can be extremely complicated. Should you put more cash into your deposit and avoid lenders mortgage insurance or should you put down a smaller deposit and keep some cash for another investment? Do you go with fixed or variable? Principal and interest or interest only? So many questions to ask and the answers will be different for different people and their individual circumstances.
An independent mortgage broker can help you find the loan that will give you the greatest return on your investment based on your individual situation.
If you don’t have a cash deposit, you could consider using equity from an existing property to get into the investment market. This is different to putting your family home up as security, you may be able to safely access the equity you’ve built up in your home to put towards an investment property. This is another area where a professional financial expert can help guide you.
New builds or renovators delight? Newly built properties are eligible for depreciation tax relief, are more desirable to tenants, and require less maintenance. However, some investors prefer older style houses. It all depends on your individual style and skill set. If you have plenty of spare time, great vision, and cash flow, a renovation may be a good investment for you - or you might prefer a new build where you avoid some of the unknowns.
At Dwyer Property Investments we have seen it all and know all the right questions to ask to ensure your investment journey has no surprises and everything is covered off.
Once we’ve considered all these steps above, then you are ready for the fun bit, looking at houses.
You will feel a lot more comfortable about your investment and your future when you have done these important pre-investing steps.
Email me here and we can discuss the next best steps for you: [email protected]
Jason is the Managing Director of Dwyer Property Investments and a trusted local expert. Together with build partner Dwyer Quality Homes, he’s been helping Queenslanders buy profitable, cash-positive, tax-effective investment property for 35 years. Visit dwyerpropertyinvestments.com.au.
Privacy Policy | © 2020 Dwyer Property Investments. All Rights Reserved.
