Making the decision to invest in a property – whether it be residential or commercial – is tough, and shouldn’t be taken lightly. But, when done properly, investing in a property can be a fantastic decision financially, and can set you up for the future.
Here at ACTON we are experts in Perth property investments, and happy to chat about any part of the process. Here are a few tips to start you off:
Do your research
Figure out what it is that you are looking for in a property: a house, apartment, unit, commercial space? If you are looking at buying with a partner, sit down and figure out what your goals are. What areas would you like to focus on? Make sure you choose locations in Perth that are close to schools, transport, and shops. Come up with a budget, and do some research into whether it is feasible. If your budget is low, is buying an older or ‘fixer upper’ property an option for you? Stay across the market trends and make sure you talk to a local real estate agent for all the inside information.
Save a healthy deposit
When you have completed step one and know what type of property you want to invest in, take a closer look at your finances and come up with a budget. When searching for
potential properties online, many will have a mortgage calculator in place to show you how much you can borrow and what your weekly or monthly repayments will be. Many banks also offer this service online, and real estate experts can help you figure out how much you will need for a healthy deposit.
Shop around for finance
Once your budget is set in place and you’re on the way to a chunk of savings, start looking around for the best finance possible. Many people make the mistake of simply choosing to take out a home loan with the institution they already bank with – though sometimes your bank may be the best option, it can pay to shop around as each institution has different terms and conditions.
Look, choose and check
When you have established how much you can borrow and what your deposit is going to look like, it’s time to hit the ground running! Start attending home opens and auctions and make sure you have a solicitor on hand for when you do choose a property to invest in. Write down all the features that you are firm on having in an investment property and make sure you look at your checklist before you make a final decision. As soon as you have your sights set on a property, make sure you investigate every square inch of the property before you sign on the dotted line.
Prepare to be a landlord!
Phew, you did it – you chose a property! Now for the paperwork. You need to go back to the bank you chose and make sure you can get a loan approved and negotiate any contract conditions. Make sure you get advice from a solicitor at this point in the contract process, as the next stage is signing agreements and paying your deposit to lock in your purchase. When all the paperwork is signed, you need to start thinking like a landlord – do any urgent repairs or renovations need to be made? Grab the keys to your new property on settlement day and give yourself a pat on the back.
Are you ready to invest in your first property?
Loved these tips but want more information? Maybe you’re ready to start looking at houses in your preferred areas? Get in touch with your local Acton team today and we’ll help you get the ball rolling.