Property investing - a home for you or a home for someone else?

Investing in property - whether it's for a home for yourself and your family or as an investment to provide a home for others, is something that most of us aspire to.

Moving out and renting your first home is many Aussie's first real step towards adulthood. Signing a contract to purchase your first house is often when it all gets serious - it's usually the most nerve wracking and exhilarating thing we'll ever do.

If you're at the stage in your life where you want to buy a property, but if you're not sure if you can afford your dream first home but you still want to buy something, then buying an investment property is a great solution.

From our years of experience, talking with property buyers every day, here are our tips for successful property investing:

1. Invest with your head not your heart. Buying an investment property in your favourite holiday destination isn't always a great idea. Neither is that gorgeous little house that's incredibly cheap in a country town. You need to make sure the numbers support the investment.
2. Take a good hard look at the numbers. What are comparable sales prices? Is there demand for rental property? Is there infrastructure investment and jobs growth in the local area? Will the rent cover your costs? How long can you survive without a tenant? What stage of the property cycle is the area in? What's the potential for capital growth? What are the monthly/quarterly expenses? What are the tax benefits? How long until you get a return on your investment?
3. Take a good look at your finances, your budget and lifestyle. Having a mortgage takes a big chunk out of your salary. Have you created a budget to ensure that you can afford it? Do you live an extravagant life that you could cut back on a little without too much hardship? Do you even know where all your money goes? It's important to get these things under control and understood BEFORE you sign on the dotted line.
4. Take advice from professionals rather than well meaning family and friends. Sometimes you'll be lucky and have some great investing mentors amongst your personal network, but, before taking their advice, make sure they're talking from their own recent experience and that they've had success from investing - otherwise, seek out professionals. It's our job to stay at the forefront of knowledge within this industry. In my case, you can tap into my knowledge at no expense to you. It's similar with some investment consultants too - they are paid by the vendor. You'll have to pay financial planners and accountants, but, if you've got a good one, their advice will give you peace of mind and they'll get you set up right from the start.

Buying property is a great thing to do. Sometimes you need to think outside the box to get started. You may not have planned to be an investor before a home owner - but if it gets you into the market and you can build equity in the property, it won't be long before you're buying a home for yourself.

Please give me a call or email me if you want to discuss your numbers, your plans or your dreams. I can help put some structure around them, let you know what you can and can't do and put you in touch with trusted professionals.

Good luck!

Caroline

0425 800 887