Before you can even think about investing in property, you have to get a handle on the basics. Typically, first time investors have many questions about the process - questions they may not be confident admitting they don't know the answers to. Here are some of those questions and the brief answers they come with.
When is the right time to invest?
A lot of people think they need to wait to be homeowners before they start investing. But increasingly, Australians are realising they can become investors before they've got a place of their own. If you have enough saved for a deposit, you may be able to buy an investment property with it. In time, this investment could be what helps you secure a home of your own, or an alternative goal.
What are my goals?
This should be at the top of the list of questions first time property investors ask, and they should ask it of themselves. What are you hoping to get out a property investment portfolio? What financial aim are you hoping to meet? If it's for retirement, what income will you need to fund the kind of lifestyle you want, and how much time do you have?
Can I afford to invest?
Every individual investment is different. What you can afford largely depends on what you hope to achieve and your time-frame to achieve it. If you get a free property investment plan from DPN, we can find properties that match your affordability level, as well as tailor a strategy that fits your goals.
Of course, you'll also need to look at the costs involved in running an investment property to make sure you can afford it on your income.
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What are the costs involved?
There are a number of ongoing costs involved in a rental property, including:
- Maintenance, repairs and pest control
- Making loan repayments
- Property manager's fees
- Insurance
- Council rates and other bills
Don't forget the upfront costs, too, such as paying stamp duty or the expense involved in marketing and in screening tenants. Remember to factor in the income you'll earn through rent as well.