Checklist For Your Investment Property Plan

Property investment is not a simple task, and getting financially ready for an investment requires thorough planning and research. By taking these steps, you can figure out if you have the money to invest while learning how to be investment ready (beyond finding the funds).

Do your research

Make yourself aware of what’s currently on the market, what’s selling, and get familiar with the property market as an initial step, as this will both frame your investment plan but will also guide your expectations if you choose to invest.

Consider your equity

Take the time to evaluate your equity alongside current mortgage repayments or loans, credit history, employment situation and stability, your budget, and the cash you have available to invest. Be realistic about the potential of your circumstances changing and ensure you have the assets to accommodate for these changes.

Set a budget

As you consider investing, set a thorough and realistic budget, and be sure to stick to it. If you are unfamiliar with creating a personal budget, an accountant can assist you in developing one.

Get a pre-approval

By getting a pre-approval, you can find any issues within your credit history which may prevent you from investing in property. Having a pre approval lets sellers know you’re serious about buying, and may facilitate an easier buying process.

Develop an investment strategy

If you don’t have a thorough understanding of investments, it may be beneficial to seek the advice of an investment planner in developing a strategy for your investment. To create a strategy, you need to consider questions like:

• What is my long term goal?
• What timeline would I like to achieve my investments in?
• Do I want to be a passive or aggressive investor?
• How many investments am I looking to take on?

When choosing a financial professional, be sure to do your research and find someone who you can trust, with a reputable professional history.

Creating a timeline

Now that you know what you want to achieve with your investment, it is important to decide on when you are planning to invest. By making a long-term investment timeline, you can then work backwards, to establish when you need to be preparing for new investments. In a timeline, make sure to factor in property maintenance, which will be ongoing throughout the duration of your ownership.

Expect the unexpected

Expect the best, but prepare for the worst. In planning your investment, make sure to allow some margin in your budget and timeline for events outside of your control. When developing your budget and strategy, be realistic about what may hinder your investment, and prepare solutions ahead of time to avoid these roadblocks.

Stay informed

Whether it is networking with other investors, attending investment seminars or calling our independent phone team, staying informed will help you make the best decisions in your investment context. 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.