Property Investment Tips from our Team
So, you’ve been thinking about investing in property? After doing your research—reading books, magazines, and reports—for sure, you have seen the bright opportunities in real estate. Yet, when push comes to shove, you start thinking twice.
It’s not surprising to see people get overwhelmed by the process and quite before they even begin. Most of them have a difficult time finding the right property. Just like any other investment, there are risks. To help you begin your journey, here’s a short guideline to establish a property portfolio on a solid ground:
STEP 1: Check your finances – Get your FICO Score
You can simply do this by listing all your assets including your income and monthly expenses. This will give you a rough estimate on how much you can invest. Be optimistic with your goals. The problem with most people is they always jump to conclusions. Keep in mind that as long as you have a stable income or a good employment history, you won’t have a problem getting a loan.
STEP 2: Get a pre-approval
Consult a reputable mortgage broker to assess your loan application. This can be a huge advantage, especially if you’re not sure you’re financially ready to invest. Avoid applying for multiple pre-approvals. When you apply, the lender needs to check your credit record. Multiple inquiries can send a red flag to the lender and may refuse your application.
STEP 3: Know your goals
By now, you should know your goals. What do you want to achieve? How would you measure your success? Usually, property investors stay in the business to secure their financial future. Set a milestone so you can gauge your progress. For example, if you want to replace your income and retire on your investments within 12 – 15 years, you can start by creating a 15- year plan, broken down further to 5-yearly, annually, bi-annual, all the way down to weekly timeline. This can help you organise your strategy and reach your goals.
STEP 4: Focus on your purchase plan
Your plan should facilitate your goals of growing your portfolio. Monitor the growth of your income. Keep in mind that you may need to make a few adjustments to stay in the game. Use different tools to help you make informed decision. You may also want to consider checking different unlisted property trusts.
STEP 5: Do NOT buy! (without a comprehensive survey from a licensed contractor).
It’s always amazing that people want to save maybe $500 or $1000 on a complete property report for such a major purchase! It is understandable that the money could be see as dead money (not being used for the purchase or anything with any value) however the importance of this service cannot be underestimated.
Following these steps can help you establish a good property portfolio. Always remember, consistency is the key to success.