Investing in real estate is a great way to reach your financial goals and the preferred way for most people to invest. Here is some of our top tips you can follow to ensure you become a successful property investor.
1. Be Prepared And Know Your Stuff
Knowledge is power and it really the only way to take out the guess work our of your investing. Take your time, do your research and be an expert in the area and property type you are considering.
2. Have A Clear Set Of Investment Goals
Setting clear and specific investment goals before you do anything is crucial as this will help you decide what type of property and investment strategy is right for you.
Your goals should include the number of properties you need to buy each year, the return required, the type of property, and the location of each.
3. Pick The Right Location
We have all heard the saying ‘location,location, location’ for a reason and its because location is crucial. Before you even go look at a property make sure that its located in a location that satisfies your investing criteria. If you are buying for capital appreciation then ensure the area is one that is likely to experience growth. Alternatively if you are a buy to let investor then ensure the current returns on offer meet your requirements.
4. Know Your Budget
Before investing in property it’s crucial you have a thorough understanding of your financial position and exactly what you can and cant afford. If you plan on buying with finance then its important that you ask your bank for a pre-approval of your investment loan, so you know exactly how much you are eligible to borrow before you start searching for properties.
5. Know Your Ongoing Costs
Its one thing budgeting to purchase a property but unfortunately the expenses of owning a property dont stop there. When evaluating an property purchase you need to ensure you budget for rates, insurance and general repairs.
6. Don’t Get Emotional About Property
When searching for properties and going to inspections it’s very easy to get caught up in emotions. This may not be a bad thing if the property you are looking at is going to be your next home but if you are buying for investment purposes you must keep all emotion out of the decision making process and buy based on fact and figures.