At Kinnetic homes our team are passionate about property and the real estate market. This passion is the driver behind our collective interest in purchasing dream homes and investment properties alike. We get a real kick out of watching our clients build their property and investment portfolios. Because of this we thought we should put our Kinnetic heads together and offer some advice to those looking to purchase an investment property.
Know your budget
Before investing in property it is important to take some time to assess your cash flow, we suggest making contact with your finance broker is a good place to start. A broker will guide you through various finance and lender options before progressing to the pre-approval process for your investment loan, this will give you an idea of how much you can borrow before you start your property hunt.
Ongoing costs are easy to overlook, it is important that you include all of the costs you may be liable for throughout the life of your investment. This includes insurance, repairs, rates, real estate and property management costs.
Buy with your head, not your heart.
Buying property can so easily become an emotional pursuit but it is important to be analytical and not emotional. It is important to approach your investment property like a business, you want this business to bring you a return. It is imperative to do your homework in property investment, important questions to ask are, what is the rental yield like in the area? What is the historic capital growth in your chosen location, and will this property give you return on investment?
Think long term
With any kind on investment, whether it be property or otherwise it is important to have the patience and particularly time to allow your investment to grow. Keep your finger on the pulse and stay up to date with the property market for the life of your investment, investments can often ebb and flow so make sure you know what’s going on in the market.
Buy the right property
Three key elements come into play with property investment. Put simply, these are right location, right lot and right plan. It is integral to do your research into growth areas, find a block of land in an appealing area and find a house plan that is both cost effective and quality built.
Avoid Financing Faux Pars
Property investing can quite quickly turn into a game of finance. The best advice we have been given is to seek help from the professionals. Mortgage brokers are your ultimate investing tool. A good broker can save you time and stress throughout the buying journey. Luckily for you we have done the leg work for you, we are partnered with some incredible finance specialists who know their way around investment finance.Contact us today so we can make an introduction.
If you are interested in learning more about some of the great turn-key, fixed price products we have available that would be perfect for investment get in touch today.