Property investment is alive and well in Australia with over one million people owning some kind of investment property. Like many, you might be looking to carve off your own slice of the property pie.
While there is certainly a lot of appeal to getting involved in property investment, a lot of people get overwhelmed by the process. If you don’t begin how can you enjoy the potential for high returns in the future?
To make things easier, here are some essential steps for getting a great start in the exciting world of property investment.
Check Your Finances
The first thing to do to get a great start in property investment is to take stock of your personal finances. This should include listing all your assets, including all sources of income, and compare these to non-negotiable recurring expenses you need to cover. This will give you a much clearer idea of how much money you can realistically use to invest. Don’t just think about the last bank statement you looked at and assume that you don’t have the money to start investing. As long as you have reasonable employment history and a decent salary, you should have no issue getting a loan.
Don’t just think about the last bank statement you looked at and assume that you don’t have the money to start investing. As long as you have reasonable employment history and a decent salary, you should have no issue getting a loan.
Establish Your Goals
Next, take a step back and decide what success means to you when it comes to your property investment. Most private property investors get into development and house flipping to ensure some kind of financial freedom in the future or to save money for something specific.
To ensure that you’re able to achieve your goals, clearly articulate what they are. More importantly, set yourself deadlines for when you want to achieve those goals. This will make it easier to work backwards through the calendar, and start putting wheels in motion promptly.
Do Your Budgeting
Budgeting isn’t the sexiest part of property investment. However, don’t rush headlong into looking at homes or land for sale without doing some decent budgeting beforehand. Otherwise, you’re going to have no real way of making sure that you’re able to balance your income and expenses as you get deeper and deeper into the world of property investment.
Before you throw a single penny into the property market, you need to have a clear idea of where you’ve been spending your money and the kind of big expenses that are on the horizon.
Keep Well Informed
The internet is the largest bank of knowledge to which humans have ever had access, so make sure you’re using it to its full potential! Having a keen understanding of the property market can be absolutely essential to making the right calls when you’re investing your hard-earned capital.
It also means that you’ll be better at steering clear of “get rich quick” schemes, useless renovations, and investments that are sure to turn sour. You’ll never be able to predict the future of the market, just like anything. However, by getting in the habit of reading some good journals and blogs, you’ll be much more in-tune with how the property market works.
Don’t miss the podcast with Property Developer and Mortgage Broker, Joe Tirimacco, who has some excellent information and tips on how you can increase your wealth in property without risking your current assets