Finding the perfect property can be daunting for a first-time property investor. A good way to begin this journey would be to acknowledge that all investments entail risks. While factors like market volatility are beyond the control of the investor, smart choices can help mitigate some risks. Ultimately, all property investors seek to maximise returns and secure long-term financial gains. Here are the six most important tips to help a first-time property investor navigate through the property market and find the right investment.
1. Set A Goal And Establish A Timeline
Investing in property is a big commitment. Fickle investor sentiment can keep you from achieving greater returns while costing you your time. To avoid this, the first thing you should ask yourself is what are you hoping to achieve and by when. Setting a time frame for yourself can help you be on track and pursue your goal methodically.
2. Professional Over Personal
Many investors often overlook the professional aspect of buying a house and are swayed by personal likes and dislikes. Impulsive buying decisions will not help you maximise the value of the property and you may even end up overpaying for the house. From the outset, think about the practical gains and know that the purpose of the investment is to increase your wealth.
There is plenty of information out there that will build your knowledge. However, that can also feel a bit overwhelming. A great way to streamline your research from endless information would be to start with the location. Examine the past sale prices of neighbourhood houses and local amenities such as hospitals, schools, and transport. Find out whether there are any proposed developments in the area which will affect the prices. This will enable you to determine what to expect from your investment and help you to make an informed decision.
4. Plan Your Finances
Your research will provide you with a fairly certain idea of what you can afford and what your options are. However, there is more to finance than that! Consider the properties you have shortlisted and determine if they need any repairs or a renovation as they will incur costs. In certain cases, a renovation may even add value to your property. Before making any purchases, you need to ask yourself which of these options are financially feasible and profitable.
5. Manage Your Time
If your chosen property is a long commute and being a property investor isn’t your full-time profession, consider appointing an agent or a property manager. A property manager will look after the property, advertise it, and be a mediator between you and your tenants. While a percentage of your income will be shared by the property manager, you will be saving up on a significant amount of time.
6. Plan For The Future
As a first-time property investor, you will want to ensure you reap the long-term benefits of your investment. Connecting with local investors and networking will help you formulate your expectations early on. Many property investors have found it useful to stick to one strategy in the long run, while others keep adapting to changing markets. Different investors have different strategies but networking early-on will keep you updated about the changes in the market and evaluate future opportunities.
Need help getting started? iBuildNew will point you in the right direction. If this is your first time investing in property, working closely with an expert will simplify your experience. Speak with our phone consultants and you’ll get advice and help in working out the rest of this list. Contact us on 1800 184 284 today or book a call.