At Purely Finance, our mortgage brokers and financial planners in Perth provide one stop shopping for those in the area who want to create wealth through investment property. We feel for numerous reasons that investing in rental properties is the most consistent and reliable way to create wealth.
While we can’t give individual advice without a consult, we would like to provide some important things to consider when buying any investment property.
Management by Objective
It is important to know what you want and develop a plan of how to get it. How many properties do you want in five years? Ten? Twenty? How soon do you want to retire? How are you going to save for your first investment property? Create a plan and review it on a regular basis.
What Type of Property is Right for Your Goals?
It is important to know which kinds of properties are best for your resources and goals. Always do your due diligence and find out which kinds of properties provide you with the best opportunity to meet or exceed your goals.
Can You Renovate Property?
Some investors would rather invest in new properties. Some, however, buy older homes and add value to them by renovating. Often, a property that only needs cosmetic renovation can be had for a substantial discount.
Location is Still King
The location of any property dictates its two most important characteristics: current lifestyle and prospects for capital growth. A great lifestyle location can command higher rents now and more capital growth in the future.
The main considerations: proximity to CBD, schools, shopping, public transport and other amenities and infrastructure. Another important consideration: future projects. If a major employer is about to build a large facility nearby or a new railway or freeway to the Perth CBD is slated for development in the near future, your property’s value may rise sharply.
What Can You Afford?
It is important to know exactly what you have to spend. One of the best ways to do this is to get pre-approved for a mortgage. You should also have a financial “buffer” in case of emergency repairs or vacancy.
You should always try to structure any investment so that it provides maximum tax benefits. Wealth protection products, financial planning and a good tax attorney are an important part of your investment team.
What Do Renters Want?
Extra features like a lift, a lock-up garage or a second bathroom can make a property more desirable. A modern kitchen is a must for keeping vacancies down. Figure out who you want to rent to and make sure your property has irresistible features.
Treat it Like a Business: Because it is a Business
Do not buy a property because you like it; emotional attachment to a property can stop an investor in his tracks. Every property you buy should be a solid business decision. What you like means nothing; what the market will pay good money for means everything.
Timing and Market Knowledge
Unless you have time to learn the market fully, you will need the advice of a great financial advisor who specialises in Perth investment properties. We specialise in investment properties and are the perfect people to have in your corner. Even so, we want you to learn as much about the market and what you can and can’t do as possible.
Some investments are terrible now but will look fine in one year. We have learned the nuances of property investment; take advantage of our knowledge.
Your Investment Team
You will need a financial planner, a mortgage broker, an accountant, a tax lawyer, a valuer and a real estate agent. If you want to succeed, it’s truly a team effort. Put your team together now and start yourself on the way to success.
Call Our Financial Planners in Perth Today
At Purely Finance, our financial planners and mortgage brokers specialise in people just like you who want to create wealth by building a portfolio of rental properties. We also offer wealth protection products to keep your assets safe.
To learn more, call us today:(08) 9453 8888.