Most people have no real idea of what they are doing when it comes to investing in property and so make some basic mistakes from the start. In this video I tell you about the three basic steps to becoming a property investor.
Hello, Jason Dwyer here, managing director of Dwyer Property Investments. You've been thinking about investing in property. The next three minutes will be very important for you. This video is all about the three basic steps to becoming a property investor. They are not hard or complicated. I'm surprised at how many people get it wrong by not following these basic steps. So often would-be investors think “Let's buy an investment property”. The first thing they do, which is exciting, is go to realestate.com and type in property option, but they have no real idea about what they're looking for, but it's fun and exciting and the totally the wrong thing to do as a first step at least.
The very first step we always recommend is to contact a mortgage broker. The local bank may seem convenient and you've been with them for years, but they generally only have one or two investment loan types which may or may not be right for you. Different lenders have a very different lending criteria with some taking over time into account, other time self-employed sole trader medical worker teacher. Do you have a cash deposit or are you a homeowner using equity?
All these things impact which lender is going to be best suited to you and your specific needs and only a broker will be be able to determine the right loan type and lender best suited. And the added bonus is the Brokers do all the legwork for you and the lender [inaudible]. Trust me, it's very rare that a broker is not able to find you a better loan more suited to your exact circumstances and probably a better interest rate to boot. So contact a mortgage broker or we can refer you to an independent accredited one.
Second step, you need to understand the financials. This is achieved by doing a full financial report. It includes putting in all the figures like property costs, low in cost income, loan type, rates Insurance, etc. And it will demonstrate to the tax benefits like depreciation, your rental yield, cash flow, and in very simple terms will show you what your net income will be and the potential capital growth. This report is a vital often overlooked step which will help you determine your investment strategy or plan moving forward.
Step three, is choosing the right property to achieve your financial goals, which may be and you ready built home, one of our Terraces or house and land package. With your investment strategy in place, the probably choices then made simple. So let's take those steps and empower yourself with the knowledge of: one; you're able to invest in properly, two; you understand the financial benefits of property investing, three; you are then in a good position to decide when and what to invest in. We will be with you every step of the way from the first contact through the purchase or build process. And even beyond that, if you take our three-year rental guarantee option, but more about that later.
I hope you now understand the three basic steps required to becoming a property investor, and remember, that we've helped many investors through this process who are now building a successful property portfolio. So contact us when you're ready to start your journey, or even if you just want more information. Thank you.