Getting into property investment can be a little daunting at first, but if you play your cards right there’s no reason why you can’t succeed at growing your property portfolio. Here are five top tips to help you stay on the path to success.
1. Do your research
Location is a big part of your investment property choices. You’re unlikely to succeed if you don’t understand the demographics of the location you’re purchasing in. Do your own research or talk to a professional to understand property values, recent sales and the projected growth outlook for the areas you’re looking to purchase in.
2. Pre-approved finances
Pre-approved investment home loans are often overlooked by potential property investors. With the power of pre-approval, you are able to capitalise on a purchase when the right opportunity arises. Pre-approved finance options also allow you to plan your budget more carefully.
3. Know your limits
Knowing the limits of your budget before you start looking at any properties is a great start to becoming a successful property investor. Once you know where the boundaries are within your budget you can start to consider what options are available to you.
A Choice Home Loans mortgage broker can work with you to assess your borrowing capacity and ensure you have an investment strategy that works for you.
4. Know what you want in a tenant
Whether you’re looking for families with children, a newly married couple or a group of university students to rent out your investment property, your tenant choices can affect your property options.
It’s important to understand the demographics of the area you’re purchasing in to ensure a ready supply of your target tenant. You’re unlikely to get a small, quiet family in an area that’s close to a university campus. So if that’s what you’re aiming for, you may need to look in quieter, more family-friendly areas. Know what schools and childcare options are in your area, what the public transport is like, and whether there are shopping centres nearby.
5. Get help
Once you’ve purchased your first investment property you’ll probably want to hire a property manager. While you can choose to manage your properties yourself, a property manager will help free up your time. Your property manager will be able to help you with tenants whether it’s screening applications, making reference checks, inspecting the property and collecting rent.
Get the right advice
If you think you’re ready to start building your property portfolio, Choice Home Loans is here for you. Our mortgage brokers are here to help you secure pre-approved loan and talk through what options are available to you.
Contact a Choice Home Loans broker
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