Investment Tips

Five Steps for First Time Investors

Emma Slape | July 24, 2020
Five Steps for First Time Investors

You’ve decided to invest in property. Congratulations! Let’s get started then.

Here’s our top five steps that will guide you in the right direction to find your perfect investment.

1. Plan and research

When buying an investment property, you need to consider the ‘where’, ‘what’ and ‘when’ of your investment. The location of your investment will determine what tenant demographic you attract. It is important to consider factors such as access to work, schools, transport and the future value of the property. Whilst you may want to invest in your dream postcode, it is important that you broaden your search to two or three locations that meet your needs, budget and long term investment goals.

Are you wanting to invest in a smaller city apartment or maybe a large suburban family home? Does your budget include renovating the property, whilst ensuring you do not over capitalise?

Remember that the housing market can fluctuate, so it is important that you monitor interest rates and property prices to ensure you make your investment at the right time. If you are unsure about the market, or would like some industry insight, Turner Real Estate’s investor support team can provide great advice along the journey.

2. Organise your finances

Once you have decided what type of property you are wanting to buy, start to put together a budget. Most banks and lending institutions offer mortgage calculators on their websites. You will need to calculate a deposit amount that you will need and start saving. When you have achieved this saving, you can start to get your finances organised. Chat to a lender about the options which would work for you. Pre-approval allows you to have a greater chance of having your offer accepted and also allows you to know your borrowing power. If you are looking for expert lending advice, our friends at Rise High Financial Solutions can assist you in your property journey.

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3. Choose the right property

From your planning and research, you’ll know what type of property you’re keen to buy and where. Now create a checklist of all the features that you know will make it attractive to tenants. Once you have seen and compared several properties you will be able to have a greater understanding of the current market value, and you can determine which property offers the best return.

4. Find the right one

A solid rental yield is essential for successful property investment. Ensure you know all of the ongoing expenses for the property and also any current rental information as this will help you choose the right property. Don’t make an offer until you’ve done some deeper investigations – think with your head, not your heart. Many investors jump on the first property that comes close to meeting their ideal investment criteria. But doing your research on costs such as strata fees and insurance and having a building inspection will allow any you to make a wise financial investment.

5. Prepare to be a landlord

Once you have signed the contract and the property is yours, it’s time to start thinking like a landlord. You will need to consider if there are there any urgent repairs or redecoration required and the costs of these. A professional Property Manager will be able to advise you on a range of key issues, including preparing the property for rent, what to expect when the property is advertised and the legalities of tenancy agreements. By using a professional experienced property manager you can outsource the hard stuff and ensure that your investment is as stress-free as possible – and delivers you the very best financial return.

If you are wanting a trusted team that will give you sound advice, with a track record of results for thousands of clients, please contact us.

Article by Emma Slape

Chief Executive Officer
Emma leads the team at Turner Real Estate with energy and passion, committed to the company vision of providing client service that sets the organisation away from the crowd. Actively involved in the day-to-day operations, Emma is always looking for new opportunities to keep evolving the business and setting new… VIEW PROFILE