So you’ve figured out that investing in property is the right step to either begin or diversify your investment portfolio. You know the potential pros (rental income, capital growth, tax deductions) and the cons (interest rates, maintenance, expenses). But where to actually start? It’s an exciting prospect yet can seem challenging; particularly if you’ve never even owned your own home before. Here’s our tips to get started in property investment.
What do you want?
Commercial, industrial, rural, residential; there are several types of properties to invest in. Most people opt for residential property as it tends to offer more stable income with higher growth in the long term. You’ll likely choose to build - a house and land package is easily the simplest option here - or buy a newly built home as you’ll receive major tax depreciation benefits as well as rental income for the first few years. New houses have fewer things to fix in the early days compared to older ones plus tenants are attracted to newer homes.
Figure out your finances.
There are many budgeting and loan calculators online that can help you with the math. If you have a good relationship with your bank manager, book in with them for a chat as a starting point. However, it’s best to seek out an independent professional financial advisor who’ll be on your side. They’ll be able to tell you how much you can spend, how much you should spend and ensure that the investment fits in with your lifestyle and goals. From there, talk to a range of lenders and mortgage brokers about gaining pre-approval for a loan. Then you’ll really know what you’re working with!
Do your research.
Once you have a budget set, you can search the web for individual suburbs - eg. “Rockbank property market” - to find up-to-date info on what rental price you might expect, median house prices and what the demographic of an area is. Next, find out what type of amenities are around or what is planned. Accolade has an abundance of amenities located close by, and plans for more to come in the future. In addition, all Accolade lots come with a complementary landscaped garden, such a great way to help with future resale value as well as ensuring it’s a beautiful, unified place to live.
Just Start.
Finally, you’ve got to start somewhere. Don’t think you have to wait until you’ve paid off your own house to invest in the next. You’ll already have equity built up that you can use for leverage. The earlier you buy, the more time you’ll have to see returns. Accolade is here to guide you through the exciting steps of venturing into property investment, so pop into our sales office, open 7 days from 11 am-5 pm at 1220 Leakes Road, Rockbank or call on 1300 268 629 and let’s begin your journey today.
