If you’re thinking about buying your first investment property, then your mind may be filled with hundreds of questions.
Where do you begin?
Here are four of the most important things you need to do as you begin your journey as a property investor.
1. Know Your Goals
Before buying an an investment property you first need to know where you are at, and where you are going – you need to have an investment plan and aligns with your broader wealth goals. Making this purchase is not the ultimate prize, it is just one of (hopefully) a number of investments you will make on your road to success.
Though it feels good to purchase your first investment property, you have to remember that the work doesn’t stop there. This is only the beginning. You need to have goals in place so that you know where you want your investment property to get you. Without goals there’s clearly no strategy, making buying an investment property a risk.
2. Do Your Research
Don’t make the mistake of thinking a real estate agent or someone else will take care of all the work and find you the perfect property. You need to be doing your own research, too. After all, this is your money, your purchase, your investment and your future. You can’t afford to leave those things to chance.
You’ll have many many options to choose from when shopping for an investment property so you shouldn’t settle for the first one you come across. The more options you consider, the better your chances of making a smart purchase.
Remember to do your research on the neighbourhood of a potential property, as well. This will help you know what you’re getting into and what kind of property appeals to the needs of the local demographic.
Learn as much as possible about property investment by networking with other professionals, especially those who already have a proven track record of success.
And further to this, most importantly, access the support of a credible property investment advisor, who can guide you through the process and ensure that the purchase you make is the right one.
3. Get the Inspection Done First
We can’t stress this point enough: check out the property before you buy it! This means do more than just visit it in person for a walk-through. Order a professional building inspection and pest inspection, before ‘cooling off’ period ends (at the latest). It is worth the cost even if you don’t end up making the purchase.
It is absolutely essential that you know what you’re getting into. If you don’t thoroughly inspect a property before investing in it, you could be surprised later by some nasty repair charges that will negatively impact your cash flow from the property. It’s better to find out in advance if there’s something that could make you regret your purchase.
4. Get Expert Advice
Buying your first investment property can be a highly emotional experience. You may be under stress from worrying about the financial risk and prone to giving into pressure from real estate agents. You might be won over by impressive but nonessential details such as finishing and decor. Or you may be so excited about owning a property that you agree to paying more than you should.
Ultimately, it is essential to get advice about two main things?
– Does this investment fit with my strategy, and
– Can I afford it?
At Nitschke Nancarrow, this is our expertise. We have helped hundreds of clients find prosperity through property, and personally I have had great success as a property investor. I’d love to do the same for you.
Contact Nitschke Nancarrow, experts in all aspects of accounting, financial planning, property investment and business. We operate in Adelaide, Sydney, Melbourne and throughout Australia. Managing partner Kym Nitschke is available for a free initial discussion about your situation. Call us on (08) 8379 9950 or send me an email.
– Kym Nitschke
The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Taxation, legal and other matters referred to on this website are of a general nature only and are based on Nitschke Nancarrow’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
Nitschke Nancarrow specialises in accounting, tax and financial advice for superannuation. Contact us now for a no obligations discussion about your needs.
