Property Investment Wise

Property Investment Strategies for Australian Property Investors with Tracey Lunniss

First Investment Property Tactics

October 20, 2008 | admin | Comments 0

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Here are 7 Tips for Successfully Buying Your First Investment Property

Be Finance Ready
This will help you determine your budget and the price range of properties you can look at. It will also give you an idea of the rent you will need to charge to make your investment feasible, and be able to service the loan.

This is a really important stage as it can take a while to have your finances in place. It is advisable to find out how much you can borrow and what the repayments will be, prior to finding a property.
Your Team of Experts
Your team should comprise of an:
* Accountant (to advise on the best tax strategy, and asset protection advice),
* Conveyancer,
* Building and Pest Inspector (to make sure the property is in a sound condition), and
* a Quantity Surveyor (to prepare your Tax Depreciation Report).

Find your team that will help make the investment process as streamline as possible. Having your team in place prior to finding a property will save you both time and money.
Location, Location
Considerations are:
* will you stay close to the areas you know and feel comfortable with?
* or do you wish to look outside the square, perhaps in other States or even Countries?
* are you looking for booming suburbs or ones likely to boom?

Now you know what value property to look for and the sort of rent you need to make it work, you can now go out and find the location for your ideal investment property.
Research
Research your chosen locations and find out what keeps that location going, ie. is it a mining town or what are the big employers in the area? If you pick a location where the whole town is reliant on one main employer, what would happen if the employer suddenly went into liquidation?

These are all important factors. Afterall, you don’t want to be left with a property in a ghost town. Check out websites such as RP Data Information Services and Sell My House for the sales history of your chosen area.

Check local papers and investment magazines as these can supply quality information on particular areas.

You can never do enough research!

It is so important to research; it can save you money and heartache later on.
Real Estate Agents
Look online at property websites such as Domain and Real Estate. These two sites have a good variety of listings allowing you to see what is on the market before you contact the real estate agency.

Find the local Real Estate Agents in your chosen area and make yourself known. Build up relationships so you can get them working for your best interests. You want them to be looking out for you rather than the seller.
Visit the Location
A house might look beautiful on the photos, but photos don’t show the noise from adjoining properties or even what properties are actually like next door.

I know some investors do buy site unseen, but it is really wise to take time to check out the location and local properties for sale. Find out where the local amenities are. ie. schools, shops, etc. What is public transport like in the area? Visit local community groups and the local stores and find out what’s going on and ask lots of questions.
Be Smart
Once you’ve found your ideal investment property, be sure to look at it from an investor’s point of view. It’s not your home – it is an investment. Too many investors get emotionally attached with a property and forget to treat it as an investment.