Investment property success can be boiled down to buying the right property, in the right location, at the right price, with the right finance. It sounds easy enough, but there are five fundamentals that you need to have in place before you start, and they’re not about interest rates or income tax – they’re about YOU.
Investment property advice is most valuable when it is given by investment property EXPERTS. Be open to the knowledge and experience of financial planners, real estate agents and other industry experts to help formulate an investment strategy tailored for YOU. These guys live and breathe investment properties and their expert guidance means they’re worth their weight in gold (or at least a 12% net return on investment!)
Building a clear, long-term investment property plan forces you to answer questions like “why am I considering investment property?”, “what exactly do I want this investment to achieve?” and “How am I going to overcome any obstacles that might pop up?”. Treat your property investment like a business and you’ll always know where you are, what you’re doing and where you’re headed.
In property investment, as in many businesses, it’s important to let the head rule the heart. Don’t let nostalgia, fear or pressure from well-meaning family and friends influence your judgement. Make smart decisions based on facts, figures and guidance from trusted financial and real estate professionals.
Be smart about debt too. While a fear of “crippling debt” can be an emotional barrier for many potential property investors, using “clever debt” can get your money working hard for you. A good mortgage broker who can assist with a finance strategy will help you to harness an appropriate level of debt that will achieve your investment property goals and have you feeling empowered about your investment finance – not stressed out about it. Debt isn’t always a dirty word.
If you’re confident about the investment property advice you’ve received, your strategy, your financials and your ability to make smart, rational decisions, then you’re probably ready to take the plunge and begin building your real estate empire. So what are you waiting for?
Buying your first investment property is a great way to start building wealth – it’s never too early or too late to start.