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Property Investment Shouldn’t Be Complicated, But Many People Get It Wrong

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.

 CHOOSE THE RIGHT LOCATION

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:

  • Locations with high population growth
  • A multi-industry workforce
  • Government investment in infrastructure
  • Retail investment projects underway or approved
  • Sought-after school catchment areas
  • Close proximity to employment hubs and recreation facilities
  • Attractive places to live, work and play
  • Multiple leisure activities and greenspace nearby

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.

Harmony Estate on the Sunshine Coast

Above: Harmony Estate on the Sunshine Coast - An appealing location for owner-occupiers

MAKE A LONG-TERM PLAN

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.

DO THE MATHS

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.

CONSIDER YOUR LOAN OPTIONS

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.

use existing equity

USE EXISTING EQUITY

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.

KNOW YOUR LIMITS

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] 

 

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FREE Download: Property Investor Starter Pack

Our 3-year rental guarantee for risk-free investing, explained
How we select high-yield/high-growth locations to maximise returns
3-step guide to becoming a successful property investor
Why property is one of the best investments
Must-know tips for investing in property (based on 35+ years’ experience)
Jason Dwyer

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.

FREE: Investor Starter Pack

Our 3-year rental guarantee for risk-free investing, explained
How we select high-yield/high-growth locations to maximise returns
3-step guide to becoming a successful property investor
Why property is one of the best investments
Must-know tips for investing in property (based on 35+ years’ experience)

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Kawana Waters, Qld 4575.

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