6 tips to break into property investing

Achieving long-term financial security through property investment has become increasingly popular with buyers, who recognise the long-term growth potential of the sector and its capacity to generate wealth.

There are several ways in which you can begin your investment property journey. These include buying into property funds such as REITs that exclusively invest in real estate and trade on the stock market. This can be a good strategy if you want to be hands off.

More often, though, prospective property investors will secure a second mortgage for a property and use their existing home as collateral against which a loan would be set to buy a second property as an investment. It is always recommended to use a financial adviser who will to help answer this question and guide you with the best solution for your circumstances. You may find you’re not in a fiscal position to own two properties yet, in which case you can build a strategy to get you to that point.

But let’s say all the planets align. As experienced local agents, we believe you still have important questions to answer concerning the suitability of any property you buy to rent and your desire to be a landlord.

So let’s go through a quick checklist:

Demand equation

Determine the demand for rental accommodation in the area where you’d have your first investment property. Suburbs with high employment, close to amenities, transport or offering good schools are usually great locations.

Rental income

Our experienced property management team will be able to offer advice on current rent levels and occupancy rates. You want to be sure the rent will be sufficient to fulfil your financial obligations. This is known as your rental yield and reflects the income you’ll receive as a percentage of the property’s value.

Capital growth

Being a landlord isn’t just about counting the rent money each month. You also want to see capital growth over the medium to long term. So again, talk to our property management team about prices trends in the local area to satisfy yourself that your investment property will gain value.

Do you want to be a landlord?

Dreaming of becoming a property investor is great, but a few realities come with it. You’ll need to budget for maintenance, and you’ll occasionally have to pay for major repairs. Good tenants can be hard to find, and eventually, even the best ones leave. So prepare for the property to lie empty on occasion and work with a good property manager.

Ready for commitment

Property investment is not just a financial transaction but a life decision. You can lose money if you don’t have a long-term view of wealth creation.

There’s always help

Our experienced and award winning property management team will be able to help you with your property management journey. Our team will help set the rent, find the right tenant, conduct the necessary checks and coordinate any maintenance work. And when the time comes to renew the lease, they’ll negotiate that for you.

If you’d like more advice on buying investment property in our area, please do not hesitate to contact us. We’d be delighted to share our local market knowledge and guide you towards suitable opportunities.