Buying a home is very different to buying an investment property. When you buy a home, you are going with your gut and your personal choices. From the moment you look on-line to the time you see it in person you start visualising your life, your furniture and your family in that home.
As humans we tend to act on emotion, and you might be more willing to pay over the market rate for a home that you love. When buying an investment property, you need a more pragmatic approach, everything needs to come down to dollars and cents, and if you aren’t going to get a return on your investment you have to move to the next property. Instead of looking at the property as a home, you need to look at it as an investment.
Let’s look at some top tips for first time property investors.
Why are you investing in property?
Investment properties can come in all shapes and sizes. Many people invest in property for many different reasons, so the first thing you need to ascertain is, why am I investing in property, and what do I want to achieve?
Know your budget
When you know the figures you are working with it will make the purchase of a property much easier. Stick within your budget and look for a property that can give you the rental income that is needed to achieve the goals you have set.
Unless there is an overnight boom, it is highly unlikely you are going to get rich quick buying a property. Property is a long-term strategy and it isn’t realistic to expect quick results.
Look outside the square
When buying a property, you don’t need to consider your needs anymore; you might need something close to home, close to your child’s school or close to family and friends, but when it comes to an investment property, the world is your oyster. Look for suburbs that are up and coming, those where the infrastructure is growing and there could possibly be a boom. Learn about the areas you are looking to invest in and do your recon work.
Not sure where to start?
We do. Why not talk to Gold Seal Finance, our team of investment property advisors have helped many people get the right investment property for their goals, matching their individual situation.
If you’re in or around the Brisbane or Logan area feel free to come in and speak with one of our financial advisors, or we can come to you. For your convenience we can organise an out-of-hours appointment, where we can discuss the best options for you.
General advice warning
This information and the links provided are for general information only and should not be taken as constituting legal, financial or professional advice. You should consider seeking legal, financial, or other advice to check how this information relates to your unique circumstances.