Investing in property is an excellent way to set yourself up for the future and ensure that your personal wealth grows. But, taking the plunge into investing and beginning a portfolio can be a little daunting for first time investors. So, what do you need to know about investing? How is it different to buying your own home? And what should you look out for?
Know your finances
While property investment is a positive step when it comes to your financial future, trying to invest beyond your means won’t get you too far. Take stock of your finances; not just what you have in savings and what you might owe, but also your assets and your regular income. That should give you some idea of what kind of loan you can take out, and what type of budget you should be aiming for when you start searching for properties.
Read up on loans
Loans come in all different shapes and sizes; fixed and variable rate, honeymoon, interest only, offsets – those are just a few of the terms that you should be across before you make any big decisions. Do some research and chat to a few different banks or lenders to find out what might work best for you. This will help you in the long run as well, when your investment portfolio starts to grow.
Learn to negotiate
This will be one of the most important skills you learn as you expand your property portfolio. Remember that you can always ask for a lower price; whether it’s on the property itself, the fees of experts or agents, the settlement terms, or the home loan terms. When you call up an agent to make an offer, make sure you’re armed with as much information as possible – and don’t be afraid to negotiate!
Do your research
Try not to rush into making an offer and kicking off your investment portfolio. The beauty of investing is that there is no rush; you can take your time finding the ideal property at a price and in a location that works for you. Do your research on different areas and properties, and seek out advice on investment decisions.
Create a checklist
When it comes to buying your own home, creating a checklist of ‘needs’ is easy. But when it comes to investing in a property, the process is a little different. Chat to a property agent about up-and-coming areas, and find out what type of properties renters are looking for. Make sure your decision is based on a broader audience, rather than just your own preferences.
Seek professional advice
It’s vital that you seek out professional advice during the investment process, as well as after you sign on the dotted line. You are going to need a property manager to look after the nitty gritty of renting out and managing your property (and your booming portfolio of properties!).
ACTON property managers are experienced, professional and enjoy providing highly personalised service to their clients. Get in touch today to find out more about our property management services.