By Kathy Brown.
Taking the leap into property investment can be a daunting feat – especially for a person new to the game who may feel like they’re taking a gamble with one of their largest financial commitments. The good news is, with a bit of time invested in considering a few variables, you’ll be able to make an informed decision based on facts.
Here follow 3 important tips that will help you in taking that leap to property investment:
1. Establish your end goal.
Before you start, think about what you wish to achieve with this purchase in the long run. What does your end goal look like with this investment? Are you hoping to improve your weekly cash flow? Or maybe you are looking for capital growth by purchasing a property to sell at a later stage for a good profit. Perhaps you’re looking for a suitable home for retirement later on? Whatever it is you wish to achieve in the long term, getting that down first will narrow down the list for your next step.
2. Know your holding costs.
First-time investors are often surprised or even shocked by the actual running costs involved in buying an investment property. These include the things you wouldn’t necessarily consider off hand and can range from landlord’s insurance, repairs and maintenance through to management fee percentages. Connecting with a reputable rental management agency and going through the estimated costs involved will give you a reality check and master your expectations from the get-go.
3. Be clear about the rental numbers.
These expectations go hand-in-hand with the holding costs and include the figure your investment property will most likely rent for, the typical vacancy periods to anticipate and the average length of tenancy to assume. All these probable predictions will possibly make a huge difference to your bottom line and lend you a clear perspective on what to expect in terms of return on investment.
Reach out to one of Harcourts Solution’s esteemed rental management agents who will be able to provide you with a free rent and fee analysis on any property you plan on purchasing as an investment. This will enable you to make an informed decision based on realistic figures and estimates.