Tips for getting started in property investment

More and more Australians understand property investment can be a fast track to financial freedom, but it’s the ‘how’ they struggle with.

There’s so much to think about. What’s the best age to start? What makes one property a better investment than another? Is it a good idea to refinance the family home to fund an investment?

Here are some top tips for getting started in the property investment game.

Age is no barrier
First of all, age is irrelevant. When to start all depends on employment status and savings, but to young ones, it is recommended you start saving as soon as you have a job.

If you have your own home, only pay the minimum repayments and save any extra money. There is no ideal age.

Research, research, research
Do homework – and lots of it.

Research everything carefully before deciding on an area and if you want to develop or purchase for investment, you want to invest in an area that will increase in value.

It is important to look closely at the rental return, which is the amount earned from renting out the property. Rental returns differ and you will want a high return, so look at what a property has leased for in the past – and not what it was advertised for. Spending a lot of money and then getting a low rental return is a common mistake.

Know the local rules, too.
If subdividing, each council has different regulations and different costs involved. Investors need to be aware of all regulations and associated costs to ensure they get the most out of any investment and use all the properties space effectively.

Meet the market
It may seem obvious, but whether buying or building an investment property, ensure it’s something people want to pay to live in. For example, single-storey three-bedroom, two-bathroom units, with a double garage are always in high demand.

 

Surround yourself with a team of professionals who can provide you with ongoing support and expertise in securing your financial future.

The Addisons Team are here to help!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. All loans are subject to lenders terms and conditions – fees, charges and eligibility criteria apply.