At the start of your journey into property investing, it’s important to explore your goals. What is it you really want to achieve?
Are you hoping to make the most of tax benefits available to investors? Do you want to create long term wealth? Do you want to build a legacy for your kids? Are you hoping that the investment property will help you pay off your home loan faster? Is property an investment avenue that is easier to understand than others? You want to buy bricks and mortar? Or maybe you’re suffering from FOMO following the last property boom.
Whatever your reasons, it’s good to spend some time thinking about them – because how will you know you’ve achieved your goal if you don’t have a goal in the first place?
If you’re going to invest in property, the main things to remember are that:
- unless you’re a flipper, property investment is a long term thing, so think 10 years or more;
- buying a new property will give you much better tax benefits than buying an established property;
- look to invest in regions that are benefiting from infrastructure investment because that’s the best indicator of capital growth and rental demand;
- research, research, research. You want to know where you’re buying, what you’re buying, who’s building it and who you’re buying it from;
- do the numbers – make sure you can afford it, make sure you can cope with periods of vacancy, make sure you can afford loan repayments at an extra per cent or two interest rate.
Investing in property is great. It’s something that so many of us aspire to do. When done well, it can be life changing.
Make sure you do it well.
And if we can help, we’d love to!