Are You Starting To Invest In Property?
STEPS TO STARTING PROPERTY INVESTING
Property investing is not so different from anything else that you may start. Sure there is probably more money at risk, but as it is with anything you want to achieve it is a matter of learning the ‘rules’.
Everything we do in life has a ’set of rules’, whether it be learning to drive, learning how to use a computer, learning to sky dive, they all need ‘rules’ so that you can achieve good results and not crash and burn.
When Starting Property Investment Portfolio
There are several keys to being successful with property investing and one of them is building a reliable, experienced team around you. Your team should consist of:
- an accountant experienced in helping clients build property investments (not all accountants have specialists in this field at their office) – to assist you with obtaining the best tax advantages when you invest in property
- a lawyer who can assist with contract clauses should they be needed
- mortgage broker – find someone you can relate to, who explains everything to very clearly and who can help you find good finance
- a quantity surveyor who can prepare your depreciation schedules to save you tax
- a valuer to appraise your property professionally
- a pest and building inspector for inspections prior to buying and for periodic inspections to keep on top of maintenance or pest problems
- property investment mentor
- reliable real estate agents and buyers agents should you wish to use them
- a maintenance team – as your property investment portfolio grows you may wish to build your own maintenance team
- property manager
Other Important Points for Success
- invest with your head not your heart – endeavour to leave the emotions at home (not easy at all) and invest purely from a business point of view
- know exactly what you can spend before you start looking at properties
- don’t over commit
- allow for ingoing expenses and additional unexpected costs
- do your homework – have all the facts and figures on properties within your price range
- don’t rush in
- before purchasing, check what rental you will get for a particular property – it is not a good idea to rely on a salesperson’s estimate of rental because that can be unrealistic at times so check with several property managers in the area and see what can be achieved
- use online automated calculators to work out your mortgage repayments, what you can afford and over what term
- build good relationships with your tenants as they are looking after your ‘wealth’
FINALLY AND IMPORTANTLY …………. DO A PROPERTY INVESTMENT BUSINESS PLAN!
Filed Under: Investment Strategies
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