5 tips to get you on the road to Property Investment
Added on by Etairos Accounting
Success in real estate is be due to many things – Time being of central importance. But often it comes down to your attention to detail. If you try to take shortcuts, skip over research or follow the advice of someone you don't know or trust without qualifying that information for yourself, you can run the risk of making a costly mistake.
here are 5 things to consider as you get on the road to property investment
1. Get Your Finances in Order
Before considering investing in property, you need to get on top of your personal Finances. Prepare a list of all your assets, income and expenses and then meet with an experienced finance professional so you can determine how much you can afford to borrow to invest.
2. Set Your Goals
It’s crucial that you have a clear idea on what your goals are and why you are investing property in the first place. Decide on timelines, milestones and deadlines for when you want to reach your goals – they need to be specific.
3. Assess Your Risk Profile
Everyone has a different appetite for risk and your personal attitude toward risk will impact your real estate and wealth creation journey. It’s important that you adopt an investment plan that suits your risk profile, you need to be comfortable with your investment decisions.
4. Understand the costs
As a property investor it’s most likely that you will have to pay 2-3% of the purchase amount upfront for stamp duty. There will also other associated costs with the purchase like conveyancing. Most of these have some kind of tax deductibility and we can advise you accordingly.
5. Budgeting is a Must
A budget helps you understand where and how you spend your money. We’re not suggesting you on off two-minute noodles to save every last cent. What you will find is that when you make the decision to invest, your priorities will change and your spending choices will adjust to accommodate your new goals. In this situation most people find they can trim their spending and increase their savings and investment, with only a little extra effort.
Investing in property has become a national past time in Australia, with most Australians either already owning real estate, or looking to delve into the market. While many of those looking have good intentions, only a small percentage actually follow through and take action on their property investing goals.
If you’re an existing home owner or if you’re keen to get started but wondering how, our property and finance experts can give you an overview of what you need to do in order to set yourself up for success. Whether you’re looking at established homes or considering constructing something new, our consultants have the experience and contact with other professionals to assist you in your decisions.
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