Investing in property can be a lucrative and rewarding experience, but it can also be a little overwhelming, especially if you are just starting.
Here we go through the steps that you might need to complete before beginning to invest in property ??
? SET YOUR INVESTMENT GOALS AND BUDGET – This is a very important step as it will potentially define if you will succeed or not. Work with a reputable financial advisor to identify your short-term and long-term goals and how you will work towards those goals while staying within your budget.
? DO YOUR RESEARCH – Research the current property market and identify locations that offer the best investment opportunities. Areas with high rental demand, good local amenities, and the potential for capital growth.
? GET YOUR FINANCE PRE-APPROVED – If you have this, you will know how much you can afford to spend on your investment property. Your mortgage broker can assist you with this.
? SEARCH FOR PROPERTIES – Now that you have your finance, you can start looking at properties within your budget. Contact local real estate agents, as they may also have “off the market” properties available.
? DO YOUR DUE DILIGENCE – Ensure you do your due diligence *before* making an offer. Look at the property’s history, past sales, rental income, and any issues that may affect the property’s value or potential rental income.
? MAKE AN OFFER – Work with the real estate agent to negotiate a fair price for the property based on current market conditions and the property’s potential for rental income & capital growth.
? SECURE FINANCE AND CLOSE THE DEAL – Your offer has been accepted, you have gained your finance, and now you have settled and have the keys!
? MANAGE THE PROPERTY – Managing your property effectively can be one of the hardest parts of property investment. Ensure you engage a professional property manager to assist with the contractual side of owning a rental and the day-to-day management of the property, its maintenance, and its tenants.
Investing in property can be a very rewarding experience if done correctly. It is all about staying within your budget, choosing the right property and tenants, and then understanding that property investment is a long-term investment; it does not provide profits overnight. So be patient, stay on top of things, and enjoy the ride!