Buy Investment Property
To buy investment property from a home buyer’s perspective, would you buy investment property before your first home? There’s a proven strategy to buy investment property, right? Are you a first home buyer?
If you buy investment property, would you consider giving up first home buyer’s grant and continue renting so you can start building a property investment portfolio first?
If you buy investment property, it means you could quickly yield income in two ways through rents and capital gains. Are you considering buying investment property before making the emotional plunge into home ownership?
Most home buyers expect their first property investment will be their home, but are there good reasons to buy investment property? Why? Because there are pros and cons depending on your focus and circumstances.
There are two types or classes of investors, fundamental and professional. As a professional property investor, you’re consulting with advisors about your financial plan and investment strategy for maximising profits and tax deductions, right?
Professional property investor establish the team and only after consulation buy investment property making sure finance is pre-approved.
As a home buyer or property owner, you’re buying property before finding your team of advisors…does that make sense?
First step; build your team of trusted advisors because if you haven’t got a solicitor right now, you’re not ready to buy.
Does it make sense or do you think it’s logical to buy investment property in your own name and to buy without consulting financial advisors first:
- Financial planner
Next logical step is to make sure your team is experienced with proven results in the area you want to achieve. It’s important to understand once you’ve bought investment property, it’s expensive, difficult to change names and entities, right?
Why make property investments your long term plan?
If you choose to buy investment property short term, this means 5 to 7 years and long term is 10 years plus. So if you’re buying investment property and looking to sell in one to two years, the buying and selling costs would make it prohibitive.
Would you be better of looking at another investment source?
Perhaps risk minimisation and asset protection are far more important to you than wealth creation? If you’re not protected for personal injury, sickness or liability it disappear fast.
That’s why you’d be very smart in utilising income protection, landlord’s insurance, building insurance and ensure you get adequate cover which is all very important.
Location is the fastest and safest rule for where you buy investment property. The choice is for a thriving infrastructure. Do research using government websites and see where government is allocating funds for infrastructure.
Now, if it’s in a capital city make sure there’s already good infrastructure in place with established roads and good councils with established suburbs.
New suburbs generally take 10 to 15 years to level out so you want to take all this data into consideration for picking a town. It’s a good idea to stay away from areas linked directly to only one source of employment…
When is a good time to buy investment property? Firstly, it’s critical to do your research and know property cycles, so you need to consult your team of advisors in respect to different types of property investments.
The fact, the best time to buy investment property it really all depends on your own personal circumstances. What if right now is the best time to buy investment property?
Here’s a short property investments check list:
- Are you developing a long-term financial plan
- Are you between 20 and 60 years of age
- Is your current income bracket more than $40,000
- Do you have a strong income history with access to borrowed funds
- Can you easily invest $50 to $150 per week
- Are your personal finances organised in a structured way
If you answered “Yes” to most of the above, are you ready to go with new property investment opportunities? Next logical step is to make sure your legal structures are in place and how to best utilise the tax system for your wealth creation…
Only if you fully understand property investments as a long-term strategy can you appreciate and accept it as a non emotional decision…does that make sense?
Buy Investment Property