People often tell me that they are ready to invest in "something" but don't know how to approach property as an option.
So in today's note, I thought I would simplify it and list the top 5 things you need to think about when investing in property.
1. LOCATION… LOCATION… LOCATION
The most important thing for long-term capital growth and strong rental demand is to be near services i.e; public transport, schools, shopping, recreation areas, hospitals etc. The more boxes you can tick, the more demand there will be for your property.
2. DO THE SUMS
There is only one reason you invest - To make money! But remember what they say...‘Buy with your head and not your heart’. And I can help you do the sums on the important stuff including:
3. MORTGAGE OPTIONS
Speak to an independent mortgage broker because they will help you work out your best option. You may be able to have higher borrowing ratios than you think which can maximise your negative gearing benefits.
It's well worth talking to these professionals because they have access to all the lenders and will get you the best deal. If you don't know one, email me and I can send you a list of independent brokers.
4. NEW VS OLD AND RENOVATE
New properties have the advantage of being eligible for depreciation tax relief. They are also much more desirable for tenants and require a lot less maintenance.
However, if you have the time and skills to renovate, don't discount older style properties too.
5. LONG-TERM PLAN
Property investment is a long game - Rarely is it a get rich quick scheme. You can’t rely on property prices rising as soon as you’ve bought. In reality, the longer you can afford to keep an investment property and build up substantial equity, the better.
So, if you're thinking about an investment property, I'd love to help you work through some of these ideas. Click here and have a look at the properties we have available now.
Or if you'd just like a chat about what's happening in the property market, I'd love to hear from you. Here's my best number... 1800 088 437
I look forward to hearing from you.
Until next time!