Property investment still continues to be one of Australia’s most favoured ways of achieving financial security. This type of investment is considered to be real, stable and you have more control. Securing your financial future through investment property should be about increasing your wealth.
Steps to getting started in Property Investing
In 2013, the Australian Taxation Office and RP Data released numbers which provided a snapshot on how the current real estate investment market is doing. Less than 8% of Australians, or roughly 1.8 million people, own an investment property. A little over 70% of these investors own just one investment property. The further 18% own just two, 5.5% who own three, 2% own four, a minuscule 0.8% own five and 0.9% own six or more.
Given these numbers, where do you belong? If you’ve been reading real estate reports and magazines to help you prepare for investing in real estate property, worry no more because we will help you begin your journey into property investing.
Clarify what you want to achieve.
Know the reason why you want to purchase an investment property? Are you looking for long term capital growth and income to create more wealth or short term get rich quick?
Have your personal finances checked.
Don’t immediately assume that you can’t afford to invest. List down your basic budget – know your expenses and work out what spare funds you have available.
Obtain a loan assessment.
Getting a loan when investing in properties is also a key step in the process. Knowing your borrowing capacity from a lender and your personal budget will give clarity in your price range that will be a fit for your finances
Know your goals.
Five to ten years down the track, what does success look like to you? The next important thing you need to do is to set a commitment when to get started.
Be aware of your attitude and emotion towards risk.
Having a clear understanding of your own emotions and attitude towards risk will help you create a great purchasing strategy.
Know your costs and fees.
Purchasing a property involves a number of various fees and charges. You will have costs associated with the purchase as well as ongoing charges.
Have your purchase strategy ready.
An ideal purchase strategy should support and be in line with your goals of growing your portfolio to a point where it’s producing the growth and or income you’re aiming for.
Make the right investment choices by using resources and tools that can help you make an informed decision. Avoid get rich-quick schemes and property spruikers.
Make sure that you stay focused.
Keep in mind that property investing is strictly a business decision. Never think like you are buying a home for yourself to live in.