Property Investment For Beginners
Contents PREPARATION ..........................................................................................................................................................3 BUDGETING AND UNDERSTANDING YOUR .................................................................................................................... 3 RESEARCH AND RISK ..................................................................................................................................................................4 GOAL ................................................................................................................................................................................................... 4 UNDERSTANDING TAX ..............................................................................................................................................................4 ATTEND A PROPERTY INVESTMENT SEMINAR ............................................................................................................4 GETTING THE RIGHT ADVICE - ENGAGE A TRUSTED ............................................................................................... 5 WHAT TO LOOK OUT FOR .................................................................................................................................... 6 STRONG RENTAL ..........................................................................................................................................................................6 VALUE THROUGH RENOVATION AND IMPROVEMENTS......................................................................................... 6 LOCATION, LOCATION, LOCATION! ...................................................................................................................................7
Please be aware the information provided in this guide is general in nature, and does not form part of any advice given to you. Please consider your circumstances before you make any decisions.
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Property Investment For Beginners
PREPARATION There are a number of ways you can secure yourself a better financial future by investing in property. Although you have undoubtedly made the right venture choice, bear in mind that there are also a number of ways to lose money if it is not carried out correctly. Planning an effective strategy can be overwhelming, especially if you’re just starting out and having to weigh a variety of opinions from friends and family. If you’re keen to get going and want to know what makes a good investment in Australia, these property investment tips will help give beginners an overview of what you need to do in order to set yourself up for the times to come.
Budgeting and Understanding your Getting into the habit of adhering to a financial plan will help you stay on track and help you measure where and how you spend your money, so we recommend you get into such a routine, prior to jumping into the proverbial pool. This should not mean that you should be sacrificing a comfortable lifestyle. If you really put your mind to it you can find that you can make small sacrifices to put some extra money away towards your investment goals. To gain a thorough understanding of your personal budget, list all your assets, income and expenses and then sit down with an experienced planner or finance professional so you can get a realistic picture of how much you can afford to borrow towards your investment.
Please be aware the information provided in this guide is general in nature, and does not form part of any advice given to you. Please consider your circumstances before you make any decisions.
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Property Investment For Beginners
Research and Risk Attention to detail is essential when planning your enterprise goals. Making uninformed decisions without speaking to an expert, lack of research, or follow the advice of an unqualified professional could result in a costly mistake. A thorough risk assessment is also important, so you should engage the services of a trusted and reputable professional who has the proven ability to formulate a plan. This will help to ensure a stress-free and easy transition into your property investment journey. They will be able to prudently weigh all the possibilities and take away the guesswork.
Goal Having a crystal-clear idea about your objectives is imperative to enable results. Setting a deadline so you can effectively monitor your process and achieve your end goals will also help you gain motivation and clarity throughout the process. After you have gone through the budgeting, research and risk assessment stages, start a new list with your aims in mind and assign target dates for these. It will help encourage and bind you towards your commitment to your nest egg.
Understanding Tax Any property purchase in Australia will almost always automatically incur a tax fee, or stamp duty, of 2-3% of the purchase price. The amount you will pay differs from state to state, and is not regulated by the federal government. It’s also important to keep in mind and have an understanding about annual land tax once you own the property. These charges vary across Australia, so make sure you look into the tax details associated with the purchase prior to going forward.
Attend a Property Investment Seminar All successful investors have attended a seminar at some point or another, recognising that education is key. These courses will help you gain an understanding of the basics of property capitalising they also help you stay focused and motivated.
Please be aware the information provided in this guide is general in nature, and does not form part of any advice given to you. Please consider your circumstances before you make any decisions.
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Property Investment For Beginners
Be wary, however, and avoid get rich quick schemes. Property investment doesn’t work that way as it is a long term, yet tangible venture. In recent times, there has been some bad press about certain wealth creation seminars so we recommend you do your research and only sign up for educational courses and programs hosted by reputable, independent organisations that have the investor’s best interest in mind. Companies who are transparent and honest in their approach will have a list of testimonials from loyal, satisfied clients which prove their success and authenticity.
Getting the Right Advice - Engage a Trusted For a more secure approach it’s common practice for new investors today to engage professional help, particularly from those already successful in the field and have a proven track record. Do your research and a background check beforehand as the decisions they will be making on your behalf will greatly impact your future. Once you have found the right fit for your investment goals they will inevitably take the stress out of the process for you. Whether you decide to enlist outside help or not, it’s always advisable to obtain some understanding of how the property market works and what makes an excellent investment. We cannot stress enough, education is key!
Please be aware the information provided in this guide is general in nature, and does not form part of any advice given to you. Please consider your circumstances before you make any decisions.
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Property Investment For Beginners
WHAT TO LOOK OUT FOR The following list has been designed to help beginners gain a broad understanding of the best performing properties, in contrast to the potentially lesser sustainable ones that could lead to financial disaster.
Strong Rental Take into consideration supply and demand in the area which you want to invest. Ideally, you want a suburb where the level of rental listings and vacancies are low, and demand for rental homes in the area is high. If the vacancy rate is high (generally, a rate above 3-3.5% is considered to be weak), this may impact your ability to find a tenant, forcing you to lower your rent. Look for properties in areas where there are at least 30% of residents being tenants, to ensure a steady investment income
Value through Renovation and Improvements Renovating and home improvements are a great way to boost the value of your property and increase the rental return. Any cosmetic enhancements, however modest, can help to increase the dwelling’s intrinsic value. Homes purchased on large blocks of land represent the opportunity to eventually develop. Land, with or without bricks and mortar, will always be a solid, tangible investment without the restrictions and obstacles involved with owning an apartment as an investment.
Please be aware the information provided in this guide is general in nature, and does not form part of any advice given to you. Please consider your circumstances before you make any decisions.
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Property Investment For Beginners
Location, location, location! Most of the properties that have high value in terms of investment can be found in the larger cities of Australia, particularly in state capitals such as Perth, Sydney, Brisbane and Melbourne. The best location for an apartment would be the suburbs, while best stand- alone homes are found a bit farther out. You might want to invest in properties located in areas from where public amenities (schools, public transport, parks, malls, etc.) are easily accessible. The proximity to these adds a significantly larger value to real estate. An investment property which performs well will always be located within or nearby a popular and convenient neighbourhood. You can always chance the property, but you can’t chance where it’s situated, so this plays a big factor. Avoid locations that are dependent on a single industry, like mining, for example, as this is a fairly risky situation; if the industry fails, everything related to will lose value. Although the information listed above gives you a good starting point to begin your property investment journey there is so much more to learn. To fulfill your goals, you should seek guidance, stay focused, and not take shortcuts when doing your research. Education is the key to making any big decision. If you line up all of your ducks in a row correctly and follow the advice given by professionals, you could generate strong returns for years to come – not only will you secure your own future but contribute to your children’s as well.
T: F:
1300 422 506 1300 448 639
M: 0433 181 544 E: chris@newvisionfinancial.com.au W: www.newvisionfinancial.com.au
Please be aware the information provided in this guide is general in nature, and does not form part of any advice given to you. Please consider your circumstances before you make any decisions.
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