4 Tips for Smarter Property Investment
22/04/2015 by The Hopkins Group
Purchasing your first investment property can be daunting. Luckily, you don’t have to navigate through this challenge alone – we’ve come up with four handy tips to guide you through.
Tip 1: Consider Your Budget First
If you’ve decided to consider property investment, you will need to determine your budget. How much are you willing to spend on this investment? Remember it isn’t just the listed purchase price of the property you need to consider. You will also need to take into account other costs such as mortgage insurance (if you require it), legal costs and stamp duty. There may even be other costs down the track, such as general maintenance.
Tip 2: Don’t be afraid to ask for help
Remember you are not alone. Crunching all the numbers can be overwhelming – even more so when it comes time to secure pre-approval for a loan.
That’s why it is important to seek advice. Speaking with a financial planner might be a helpful first step. A financial planner can help you decide whether property investment is right for you and your circumstances, help you develop a budget to achieve your goals, and walk you through the different types of loans that may be available to you.
At the John Hopkins Group, we have advisers to help you with every step of the property investment journey. From financial planners to help you decide whether this type of investment is right for you, the property advisers to help you select your property, accountants to help you make your investment as tax effective as possible, and property managers to help you secure tenants and look after your investment into the longer term.
Tip 3: Do your research.
If you’ve decided to purchase your investment through an investment advisory company like ours, the properties presented to you have most likely gone through an extensive due diligence process. At the John Hopkins Group, this is certainly true of all the properties we recommend for you. But it is important that you are comfortable with all the research presented to you and that you do your own research. What is the area like? What are the local demographics? How have properties in the area performed in the past? What is the rental demand and vacancy rate for properties of this type in the area? These are all important questions that you should consider and discuss with your adviser before purchasing an investment property.
Tip 4: Be objective
Committing to purchase an investment property can be an emotional one – it’s a big decision with so many things to consider. However, as tempting as it is to rule with your heart, when it comes to investment decisions such as these you need to let your brain take over and remain objective. Shop around and consider all the information provided to you carefully.
If you think you’re ready to start investing in property, why not get in touch with one of our experienced and professional property investment advisers today? We’re here to answer all your questions and to make your property investment experience as smooth as possible.
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