Top 5 Tips For Property Investors
If you are considering purchasing an investment property here are our top 5 tips.
Tip Number 1 – Buy Investment grade property. Buy with your head, not your heart. Buying a property close to transport, universities and schools will make it more attractive to renters. Look for liveability not luxury, but ensure the home and location has owner occupier appeal as well.
Tip Number 2 – Know your numbers. Know your budget, have a thorough understanding of your cash flow and don’t under estimate the ongoing costs. Make sure you budget enough for rates, insurance and general repairs. Negative gearing helps with tax offsets but ensure you balance it with cash flow out.
Tip Number 3 – Play the long game. Buy for the long term, be realistic about your investment goals, a quick 2 to 3 year flip doesn’t always work. Build what we call sweat equity, be prepared to add value by rolling up your sleeves. Property investing is a participation sport.
Tip Number 4 – Get the right loan structure and insurance. There are many incentives loan providers will throw at you to win your business which is great and there are many different loan features available to you some you don’t need to pay for. Rent cover insurance is imperative, ensure you are properly protected for rent loss and damages.
Tip Number 5 – Find a good property manager. Finding the right renter makes all the difference and finding the right property manager will ensure you achieve this. Renting your investment property to a quality renter who pays on time and looks after the property as if it was their own home is vitality important for a successful property investment journey.