The Simple 7-Step Guide To Property Investment
If youâ€™re thinking of getting into the property market in 2018, but unsure where to start, weâ€™ve put together this easy 7-step guide to help.
Property investment is unquestionably, since the very beginnings of investing, one of the most secure ways to build wealth, with Brisbane and the Gold Coast still being attainable for most people who work full-time.
But before getting into our 7-steps, we do need to highlight that you should always consult professionals in their fields like accountants and financial planners before you invest.
For example, your accountant can help you with your cash flow and paperwork, and a solicitor can help you interpret and prepare legal documents before you sign on the dotted line.
Property investment however, is fairly straight forward with thousands of investors buying every day, it just takes time and experience to learn the ropes. So to kick start you on your journey, hereâ€™s our easy 7-Step guide to property investment:
1. Know your investment strategy
In property investment there are really only two investment strategies, these are:
a) Buy and wait:
This one is fairly straightforward, buy the property and wait for it to rise in value. You could live in the property or rent it out so that the mortgage repayments are covered until the property is sold.
Purchase a property that requires renovating, either renovate yourself or hire an expert team, and then sell once complete. Just a word of warning, if you haven't renovated a property before, you really need to advance with caution. Little things can quickly add up!
2. Know how much money you can borrow
Before comparing home loans, it's worth hitting any of the big 4 bank's websites and entering your details into their home loan calculators to see how much you can borrow, your repayment rates and loan interest.
Then apply for home loan pre-approval, ideally with a credit check to make sure you can attain the money you need. This is crucial before you get too invested in an investment property.
3. Find the right investment property
Part of what Cultivate Property Investments doÂ is to find the ideal Brisbane and Gold Coast investment properties and help clients grow their wealth and Queensland property portfolios. You should however, have a list of what you want in an investment property, even down to simple items like if you want the property to be furnished or not. Every decisionÂ needs to be taken into consideration.
4. Get the right home loan
Finding the right home loan is essential for any investment strategy, and you'll need to decide between the flexibility of variable rate home loan, or if a fixed rate will suit you better. It can often be frustrating trying to decide!
But please note that most investment home loans use interest-only repayments to maximise the tax benefits. At Cultivate Property Investments, we have built relationships with leading mortgage brokers that offer the best rates in the market. Please give us a call on 0431 392 115 if youâ€™d like to know more.
5. Make sure you have a cash buffer
It's important to make sure you have backup funds to cover any unexpected expenses, like any periods where you don't have tenants. Investing in property is proven to be the right way to building wealth and capital growth, and by investigating the Brisbane and Gold Coast property market carefully, you can find suburbs like those that Cultivate Property Investments invest in, where property values continue to grow and tenants are always looking for rentals.
Investing in property is proven to be the right way for building wealth and capital growth, and by investigating the Brisbane and Gold Coast property market carefully, you can find suburbs like those that Cultivate Property follow, where property values continue to grow and tenants are always looking for rentals.
6. Using a property manager
Property managers are used by numerous investors to get help with your responsibilities as a landlord, help organise any maintenance issues, and help you acquire the right Brisbane or the Gold Coast tenants. They'll also make sure your tenant pays their rent on time and a property manager can act as a mediator if required.
7. Selling your property
When the time comes to sell your property and cash in on your investment, one of the biggest factors to consider is if you will have tenants or not. You may want to keep your tenants or have them move out if their lease has expired.
An important rule if you have tenants, is making sure the sales agent understands that the property is occupied and you give your tenants full privacy and respect, never just show up with potential buyers. This is also where a property manager can help.
A great property investment begins with a great property, and the team at Cultivate Property Investments on Brisbane and the Gold Coast are always searching for and offering the best apartments and homes for new and highly experienced investors.