Everyone wants to achieve financial independence at some stage in their life. However, until you have enough income-generating assets to do this, you are unfortunately dependent on someone else, such as an employer. Becoming a property investor, if done right, can provide an ongoing income and a lump sum of cash if you decide to sell it. For first-time property investors, check out these five tips to help you along your journey towards reaching the dream of financial independence.
Treat your investment property as a business
For your investment to work for you, you have to ensure that it is managed by the right people, structured correctly, and supported by people with all the proper technical knowledge and experience. However, you also need to check its financial viability and make sure it is compliant with all government rules.
Basically, you need a strategy session that considers your long term goals, borrowing capacity, asset protection and to put it bluntly, why you are investing in the first place.
Don’t do it alone
Investing in a property can be a significant financial decision and commitment. You need to make sure you understand the business and seek help from financial planners or trusted advisors.
Make an effort to educate yourself, read about local market trends in property publications or newspapers, or surround yourself with experts in these areas.
Research, research, research
The goal is to buy the perfect property, at the right time, in the right location, and at the right price to maximise your gains.
As mentioned above, you will need to be educated on property investment before making any big decisions. Research the market, talk with locals, selling agents, read property and investment reports, or visit property websites to gain insights.
Buying the wrong type of property in the wrong area will not deliver your desired results, so you have to be very careful. Try putting yourself in the shoes of your target renters and ensure that your future property meets all of their specific needs.
Cashflow is vital
Don’t overcommit financially. Buy an investment property that you can afford to own, maintain and manage for the long term.
Decide how much money you can commit upfront and then on an ongoing basis. Seeing a professional advisor and getting them to help come up with a suitable amount will help. You can also quantify the cash flow that your investment will produce so you can be well-informed before you push through with it.
Get Help From Experts
As a new property investor, it is a good idea to get all the advice you can from experts to maximise potential gains and mitigate risks. Get in touch with us today if you would like some help with key investment decisions, and let us discuss what will work best for you. Join the Conversation…