Buying an investment property is a great way to earn a second income, grow your assets and reduce tax; but like your first time with everything, you are bound to make mistakes during the process.
Here are our top tips on reducing the likelihood of mistakes along the way.
1. Ensure you have the right property and the right location:
When looking for an investment property you ideally want it to be in an area that is going to both bring you a good rental return as well as have a steady increase in the property’s value. Doing your research is essential, look at the data and profiles associated with each potential suburb.
If you are needing assistance on finding the right property for you, give Derwent Finance a call on 19800 628 869
2. Take your time:
Following from the above point, it takes time to do your research and don’t just rush into buying a cheap property within your budget without doing your research, this is a common mistake that first-time investors make, they find a house at an affordable rate, purchase it without doing any research only to find out that the property isn’t going to give them a good rental return.
Once you do have your investment property, don’t expect that you will ‘get rich quick’, if you are buying the property to sell it in a short period, you may end up at a loss. It is best to hold on to the property for a fair while of time.
3. Have a helping hand from an accountant:
Everyone wants to be able to save money, especially when it comes to the overall cost of your mortgage by paying it off earlier However, payments work a little bit differently with investments. Our brokers strongly suggest you see an accountant when thinking about investment property.
* Derwent Finance is aligned with accountants, if you want an accountant, give Derwent a call on 1800 628 869
4. Be prepared:
This may seem obvious, but there is a whole list of things you need to prepare.
* Finances- ensuring you have the right loan for your investment property is crucial.
* The extra costs on top of investment property; can you afford maintenance on the investment property when need be, management fees etc. on top of your loan?
* To ensure you get the right loan for your investment property give Derwent Finance a call on 1800 628 869
When dealing with clients when they are looking at getting an investment property, clients can afford the loan but are left short when it comes to these additional expenses
* Management of your property- Are you going to hire a property manager or are you planning on looking after the property yourself?
* There are benefits to both. However, there is a lot of work involved in managing your investment property. Is this something you have time to do?
* If you decide to get a property manager, make sure you do your research on who is the best for your needs.
If you have any additional questions that have not been addressed, please do not hesitate to give us a call or send an email to email@example.com