How to Prepare For Property Investment Like a Professional

If you’re thinking about home and land investment, there are many facets you’ll need to complete to prepare for property investment. There are two primary phases we’ve identified: planning and researching. Below is a handy list of items to ticks off along the way.

Planning for Your Investment

Before diving into researching areas of growth, it is important to determine what you want to achieve and even if property investment is right for you. As a first step consider the following: Set goals: Establish what you want to achieve and be clear on what success looks like, whether it’s a short term or long term play.

• Establish a time frame to achieve your goals.
• Create a purchase plan that is line with your goals and growing portfolio.

Get your financials in order: Understand the state of your financials and how much you can afford – this is an integral step when you start hunting for the right property and home build for you.

• Understand your borrowing capacity with a Mortgage Broker.
• Be clear on your investment objectives and strategy with a Financial Planner.
• Prepare a budget, capitalise on tax benefits and have a plan to manage your portfolio with an Accountant.
• Decide on how to purchase. Whether you choose to purchase with cash or speak to a Lender to understand the details of your loan.

Understand risk: This ties into your financial planning. Have a very clear plan to manage ongoing costs, insurance, general repairs and an understanding of how long you can afford to have a vacancy.

Research Your Investment

• Get advice from experts: In addition to your financial team, speak to investment experts to assist in researching and identifying solid investment opportunities.
  • Specialist Agents:Talking to a specialist agent will simplify the process. For home and land investment, iBuildNew uses an investment research methodology, hand picking opportunities that specifically match your goals

• Understand your target area:
  • Speak to an expert on upcoming trends and growth areas.
  • Research rental demand in your chosen area.
  • Consider the amenities in your chosen area such as transport, universities and schools.
  • Research community plans for your chosen areas. Schools, shopping centres and park developments may change the value of your property.
  • Scope the historical growth rate of the area.
  • Understand the demographic of the area and consider builds that appeal specifically to this demographic.

• Remove emotions from the process: This is easier said than done. Buying a house is usually an emotional process, but when it comes to investment properties, you need to think with your head not your heart and function over style.
  • Search for suitable not perfect. Sometimes it’s easier to dive in than wait.
• Negative gearing: Clearly understand whether your property will be negatively geared and weigh the tax benefits that come with this against possible financial stress.  

Need help getting started? iBuyNew will point you in the right direction! Whether you are looking for apartments, townhouses or house and land packages, working closely with an iBuyNew property consultant, who understands the market, will help you find something suitable that’s tailored to your needs and requirements. Get in touch with them on 1300 123 463.