Our 5 Best Dos and Our 5 Best Don’ts When Investing
Investing in property is the key to financial freedom ensuring you can live your life through passive income and do what’s most important for your health and happiness. Here are our Top 5 Tips on what to do, and what not to do when investing.
Do – Seek Professional Advice
You can’t be an expert on everything. Accountants, valuers, lawyers, building inspectors and real estate advisors are just some of the experts who can assist you in making the best decisions.
Do – Location, Location, Location
You can change the house, but you can’t change the location. People want to be within walking distance of all their favourite cafes, schools and transport needs.
Do – Focus on Numbers
Crunching the numbers on things like rates, rent, expenses, mortgage repayments, interest rates and capital growth can ensure you have a full picture of your ability to service your investment property.
Do – Know your Budget
Always keep enough cash savings in case of emergency, like if a dishwasher breaks down, there’s extra owner’s corporation maintenance, or the hot water service bursts.
Do – Add Value with Renovation
People want renovated properties, but don’t want to put in the work and inconvenience of doing it themselves. Buying a less flashy property and renovating will see great financial reward.
Don’t – Be Too Emotional
Choose property knowing it is an investment, not what you would like for yourself. The best investor takes their heart out of the situation.
Don’t – Wait
Get your foot in the real estate market as soon as possible. Property in Australia is rising, so get in before you can’t.
Don’t – Buy Overseas/Interstate
You may be tempted into the apparent value you see interstate, but it’s usually too good to be true, the capital gain may not be as good as local. Invest in the areas you know.
Don’t – Buy Contracted Properties
Properties with long term leases such as serviced apartments usually cannot be sold to owner/occupiers which is a high percentage of the market.
Don’t – Buy Off the Plan
Your personal circumstances and the business acumen of the developer can change between the purchase and occupancy of an off-the-plan purchase, making buying off the plan a dangerous proposition.
Investing can be a rewarding game and we are here to help you on your investing journey. For tailored professional advice on investing, contact one of our friendly agents at Besser and Co.