A successful property investor is not necessarily made from birth. But if you follow the right steps and methodology, you are more likely to build a successful property portfolio. Here are a few tips to get you started.
A successful property investor is not necessarily made from birth. While there may be individuals who have a natural aptitude for property investment, if you follow the right steps and property methodology, practically anyone can build a well-performing property portfolio. Here are a few pointers to get you started.
Evaluating your finances
Whether an owner-occupied or investment property, buying property requires a certain level of finances. You'll need enough for a deposit, add up your income and assets and figure out your expenses to see if you'll be able to afford that, plus the ongoing costs of investment.
Delayed gratification can be a tough mindset to adopt particularly for younger buyers. Just because a saved deposit may seem like a far away goal doesn't mean it's impossible, all it takes is the right mindset. If you have the patience, the ability and willingness to sacrifice, and start making use of compound interest now, it won't take long before you have enough saved for a property.
Creating a strategy
Once you're sure you can afford to invest, it's time to setup a property investment plan for moving forward. DPN can evaluate your financial position and create a personalised strategy with property options tailored to your specific needs. This will also involve some work on your part too, you'll need to consider your goals, and the timeframe you have for them.
Carrying out the research
It can't hurt to do your own research and get educated about the property market. Utilise sources like Residex or RP Data to check out relevant statistics, such as median house prices, rents and vacancy rates. Remember that just because the average house price is high in a city doesn't mean it's that way in every suburb.
Doing the preliminaries
Be sure to also carry out an appraisal of any property you consider investing in, to find out how much you could rent it for. You'll also want to have the usual building and pest inspections taken care of, and purchase landlord insurance to protect yourself. You should also structure your loan in the most advantageous way possible before going through with the purchase - this could save you thousands of dollars in the long run and DPN can help with structuring.
Building your portfolio
Finally, once you have your first time property investment, be sure you make use of depreciation and other tax offsets to bring down your taxable income. Over time, as your investment becomes cash flow positive, you will start to build real wealth which you can leverage to add other properties to your portfolio.
This information is provided by DPN Pty Ltd ABN: 94 630 700 186 Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and related entity of DPN. Credit for Dream Big 100% Offset and Work Smart 100% Offset is provided by Adelaide Bank a division of Bendigo and Adelaide Bank Ltd, ABN 11 068 049 178 and Australian Credit Licence 237879. Casa Capace Operations Pty Ltd, NDIS provider number 4050038018 trading as Casa Capace.