People often tell me that they are ready to invest in “something” but don’t know how to approach property as an option.
So in today’s note, I thought I would simplify it and list the top 5 things you need to think about when investing in property.
1. LOCATION… LOCATION… LOCATION
The most important thing for long-term capital growth and strong rental demand is to be near services i.e; public transport, schools, shopping, recreation areas, hospitals etc. The more boxes you can tick, the more demand there will be for your property.
2. DO THE SUMS
There is only one reason you invest – To make money! But remember what they say…‘Buy with your head and not your heart’. And I can help you do the sums on the important stuff including:
- Rental income
- Mortgage repayments
- Tax relief
3. MORTGAGE OPTIONS
Speak to an independent mortgage broker because they will help you work out your best option. You may be able to have higher borrowing ratios than you think which can maximise your negative gearing benefits.
4. NEW VS OLD AND RENOVATE
New properties have the advantage of being eligible for depreciation tax relief. They are also much more desirable for tenants and require a lot less maintenance.
However, if you have the time and skills to renovate, don’t discount older style properties too.
5. LONG-TERM PLAN
Property investment is a long game – Rarely is it a get rich quick scheme. You can’t rely on property prices rising as soon as you’ve bought. In reality, the longer you can afford to keep an investment property and build up substantial equity, the better.
Originally published on https://dwyerpropertyinvestments.com.au/the-top-5-things-you-need-to-think-about-when-investing-in-property/