Investing in property is a great way to grow your wealth. As a long term investment, it can also be ideal if you want to prepare for your retirement so that you can maintain your lifestyle even if you’re no longer working. It has become even more attractive over the past several years as interest rates have dropped to a record low.
If you’re planning on investing in property, below are a few tips that might help you get started:
1. Read as much as you can.
Before you go out into the market to shop for properties, it’s a good idea to read as much as you can first about investing in property. There’s a lot of information available online that can help you not only learn what steps you need to take before, during, and after you invest in a property, but also to help you avoid pitfalls that may cost you a huge sum of money.
Read property reports; keep an eye on suburbs that might be heading for a boom and read up on any infrastructure plans, as these are key in creating a booming suburb.
2. Put a plan in place.
Just as in any kind of investment, having a plan plays a huge role in ensuring your success. Some of the things that you need to consider include the level of monthly repayments that you can afford. To do that, it would be a good idea to look into your monthly budget and figure out how much money you can set aside for your investment. We can assist you with this.
Other things you have to put in your plan include the area where you wish to invest, the type of property you can buy, as well as your exit plan for your investment.
3. Consider all of your options.
Do you need a substantial deposit to receive lending approval or do you have other properties that you can tap into for their equity? Weighing up all of these options will make financing your investment a lot easier.
4. Work with a mortgage broker.
Taking out a home loan is your first step to owning an investment property, which is exciting, but can also be difficult and time-consuming. Working with a mortgage broker makes all of your work simpler and easier. They can help you compare loans and recommend loans that are most suited to your needs and personal circumstances. In addition, they can process and follow up your application on your behalf, which can be convenient especially if you’re a busy person.
Overall, it helps to learn as much as you can and do as much research as much as you can before investing in property. All of these require a lot of work on your end, but these eventually pay off especially once you’ve made a tidy profit out of your investment.
If you or someone you know are looking at investing in property, speak to us and book a consultation to discuss your options before looking at property.