Property investment is often regarded as one of the safest investment options around. But knowing how to invest in property in Australia is crucial if you want to be successful. While there is a lot of information out there, it can be difficult to interpret without years of experience. Which is why Darren Walters has put together this article with 6 tips on how to invest in property in Australia for you!
So, keep reading to discover Darren’s 6 tips on how to invest in property in Australia, and how No1 Property Guide can help you start your investment journey.
Understanding Your Goals
The first and most important step is understanding your investment goals. Whether you’re just starting or an experienced investor, it’s crucial you know what your investment goals are.
If you’re a first-time investor, ask yourself what you’re looking to get out of your first property? Are you chasing a second income stream? Or enough capital growth to leverage a second investment property?
And the same questions are relevant if you’re an experienced investor as well. Investment properties are all about generating wealth, whether that’s through rental income or capital growth. So it’s important you sit down and articulate your goals clearly.
Knowing these details will also help you to plan and strategise your investments effectively.
You can simply write your goals down for yourself to help with your planning. Or break them down with your financial/investment manager to help make the right investment decision for your portfolio.
The Investment Specialists here at No1 Property Guide will work with you to find investment property opportunities that match your goals. If you’re not 100% sure what your investment goals are, our team can help guide you through the process so you can make an informed decision about what you want to achieve.
Knowing Your Factual Options for How to Invest in Property in Australia
Once you understand your goals and what you want to achieve, the next step is understanding your factual options. This is where the team here at No1 Property Guide can help.
Only once you know your factual options can you make an informed decision about where to invest and what kind of investment property you go with.
Budget & Finances
A common part of buying any property, planning your budget and finances is going to be key to the success of your investment.
Before purchasing, you’ll want to budget and plan for the costs of purchasing. Things like stamp duty, mortgage fees and building and pest inspections will cost you money upfront. So you will need to calculate these into your budget.
You may also want to strictly budget to increase the size of your deposit and your borrowing capacity. Look at your finances when you begin thinking about how to invest in property in Australia and see if there are any costs and expenditures you have that you can cut.
Of course, budgeting for an investment property is different from a normal home. As you will usually plan to have the rental income which offsets a lot of the costs of the mortgage.
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However, there are some cases you’ll need to consider and might want to budget for. The first is budgeting in case you don’t have a tenant or need to go for an extended period with no rental income.
Even if there’s no tenant, you’ll still need to make your mortgage repayments, so having a plan just in case is a great idea.
You might also want to budget in case you need to make some emergency repairs or renovations to the property. As the landlord, you will be responsible for any repairs and work that needs to be done to the property. So it’s a good idea to have some money set aside just in case.
What Kind of Property?
An important decision you’ll need to make when you’re looking to invest in property in Australia is what kind of property you will actually invest in! Your options can generally be broken down into 4 choices:
- House & land
The kind of property you’ll want to go for will vary depending on your investment goals. As well as the level of risk you’re willing to take. Each kind of property fits into a different kind of market, and they all have various capital gains and tax benefits.
Make sure you discuss with your financial advisor or investment specialist when you’re deciding what kind of property suits your investment goals.
As with any investment, there are inherent risks involved when you decide to invest in property in Australia. This is a part of any investment and is something you will need to consider.
Before you begin investing, sit down with your partner or anyone you might be investing with and go over exactly what level of risk you are willing to take. With property, this is generally mostly between the different property types or where to buy. But if you’re considering other investment options, like shares, stocks or cryptocurrency, then you’ll want to consider the risk levels of each.
Understanding and being aware of the risks of any kind of investment is crucial to making the right decision.
Managing Your Properties
Finally, make sure you take the time to think about how you’ll be managing your properties! Whether you’re renting them out, keeping them as a holiday home, or just want to hold them for a few years before reselling, keeping on top of the maintenance of your properties is crucial.
For most investors, the best way to handle this is through a property manager or real estate agent. Not only will they be able to find tenants and secure your rental income, but they’ll also manage any necessary repairs and keep you updated throughout the process.
Of course, property managers are an additional cost, but it’s one that many property investors are willing to spend to take the hassle out of managing their portfolio.
Decide How to Invest in Property in Australia with Help From No1 Property Guide
Deciding to invest in property is the first step to growing your wealth and securing a future for you and your family. Knowing how and where to invest can seem like a daunting task. But that’s why the team here at No1 Property Guide is here to help!
Using Darren’s proven system, we have helped thousands of renters and investors get their new property. And we could help you as well.
Your first step is calculating your borrowing capacity, from there our Investment Specialists can advise your factual investment options and show you exactly what you can or can’t do.
Then you can make an informed decision and choose the right investment path for you and your family.
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