You may be thinking of investing to create wealth for the long term. One option you can look into is property investment. There are many benefits in property investment. You can choose to invest in a rental property and reap regular rental income, or you can choose to buy a property, wait for the value to increase and then sell it for a profit. But before you go buying a property to invest in, consider these tips first.
Property investment is one good investment because although the price is high, you do not have to pay for the property in one shot. You can take on financing from the bank and then rent out the property. The rental money you are getting should cover your amortisation and still give you extra cash as income.
Set a Budget
The first thing you will have to consider is the budget you will set for your investment. It is important that you know how much you will be able to borrow from the bank to finance your investment. You can get a pre-approval from you bank to see how much you can borrow.
When considering the budget, think of your other payables. You may be paying off your current home at the moment. There may also be other amortisations that you are still paying. Factor those in when setting your budget.
Think of Other Costs
The price of the property is not the only cost that you should be thinking about. There are other costs that go with it, such as taxes, installation of utilities and transfer fees. Before you start renting out the property, you may have to do some renovation work, which may be expensive if there are major repairs that need to be done. There are also ongoing costs such as maintenance and repairs, especially if your investment plan is to lease the property.
Select the Right Property
For your property investment to be successful, you must choose the right property. Look for a property in high growth areas as properties here will be most in demand. Properties near schools, near public transport or the business district are sure to be in high demand.
If you need help in finding the right property to invest in, our agents at Bunbury Real Estate should be able to help. Simply let us know of your investment objectives, so we can match you with the right property.
Do Some of the Renovation Work
One way to cut the cost of your investment is to do some of the work by yourself. Some repairs and renovations may be simple enough. Get help from friends and family and take care of the simple tasks. You should leave the complicated problems to professionals, however.
Consider Hiring a Property Manager
You may think it is added costs to hire a property manager for a rental property, but, in fact, this can cut your overall costs in the long run. Moreover, you will be freed from the many problems that may be beyond your comprehension. Let our property managers at Bunbury Real Estate handle all the aspects of management. This will let you focus on your investment and on growing your investment portfolio.