Things to keep in mind before Investing in Property

Investing in Property

You have probably been thinking of investing in property, or maybe you have already done so. If you are still new to the game, let me help guide you on how to understand this process a little bit better and what things to keep in mind before investing in property.  

Investing Property


The essential factors in investing in property

Choose Location Wisely 

In terms of ROI, you can achieve the greatest return on investment by targeting a location and the right investment strategy. Are you looking for capital growth potential or want to get the benefits of rental yields? 
Here are some tips to help you choose the location for your investment property. 

 

 

  • Buy where you live as you are already familiar with the area. 
  • If you wish to invest in a new place, we recommend hiring a buyers agent. 
  • Determine the type of tenants you are most likely to get in that location. 
  • Check the recent sales figure and rental statistics to determine scarcity, demand, and supply. 

Invest in a low-cost property  

Investing your money in a low-cost property can be a good investment strategy for beginners in real estate. Once you have acquired some equity, market knowledge, and financial stability, you could consider investing in mid to high range investment properties. 

Building Inspection 

A proper building inspection of the property is essential before investing. It will ensure that there are no hidden problems or issues in the property that may make it difficult for you to sell or rent your property in the future.   

A proper and thorough Building Inspection can also save you from making any quick decisions that might impact badly on your assets in the future. Sometimes, people do not consider this parameter thoroughly while purchasing a property. As a result, it could end up with vast losses in future.  

Estimate expenses and income  

The biggest mistake aspiring real estate investors make calculating their expenses after they have already bought a property. They assume that rental income will cover all the expenses. If not, they will sell this property and buy a different one. 

You need to understand that it’s vital to calculate all the expenses before you buy an investment property, you could even do a quick calculation of your income and expenses before you approach or engage a mortgage broker. This will help you plan your affordability with your monthly repayments including your other liabilities.    

Estimate expenses and income


Analyse investment loan plans  

Getting into debt is not at all a good idea despite the fact that it seems to be the easiest option. It is always a good idea to choose the most reliable loan option so that you can go for cheaper loan plans.  

There are many investment loans options available for you to choose from for your first investment property. Choose the right loan option that could positively impact your financial situation. During the process, make sure to know which loan plan gives you the freedom to split the credit or provide you with the line-of-credit facility. 

Pay all your debts   

As a beginner, before buying your first investment property, you should pay off all of your privately held debts like student loans, medical bills, etc. Any experienced mortgage broker will tell you the same thing. Once you are free with all your obligations, go for investing in a property.  

 

Final Note

Apt Mortgages is a mortgage company dedicated to helping people secure the lowest rate possible for their mortgage and providing financial planning advice. Our team makes an investment loan more accessible than ever. Whether you are a first-time investor or an experienced property guru, our team is here to help you analyse your loan options and put a plan in place for your future goals. 

In any case, it is an excellent idea to discuss investment properties with our financial planner. Contact us for more details.  

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