A guide to help you understand what’s involved
Investing in property is a popular way to build wealth. But it’s important to assess your property goals whether it’s your first investment property or you’re expanding your property portfolio.
First ask why you want to invest in property. There are many reasons to invest including positive cash flow or capital growth. What you want to achieve will determine the right investment strategy.
It can sometimes be easy to miss important details or forget a step. This is especially true if you’re a first time investor. You have to ask yourself if you can do the research needed to understand how the property market works.
Before you invest it’s important to understand budgeting and goal setting. This will help you save for your property and ensure you’re realistic with your finances.
There are also other costs involved with buying an investment property beyond a deposit and mortgage payments. These could include stamp duty, fees and building reports. We’ve made a list of them so you can plan for these costs. You’ll want to ask yourself if you really understand the costs and if you’re ready to commit to them long term.
Property investment brings many long-term benefits, but there are also risks. Carefully evaluate risks before you decide an investment is right. Some disadvantages of property investment and potential risks you may face include:
Savvy investors take steps to minimise their level of risk, like diversifying their property portfolio. This may involve investing in different property types across different states or using other strategies:
Research and planning play a role in your investment’s success. Speak with an Aussie Broker as you begin your property investment journey and find the right loan.