As mortgage brokers who specialise in property investment home loans in the Perth area, we like helping the small investor get started. Every self-made large investor has one thing in common: they all started out as small investors.
If you are thinking of getting started, now is the best time. You will never have the combination of record low interest rates and temporarily stagnant prices again. Here are eight steps to becoming a property investor.
Your Financial Inventory
To be a property investor, you will need to know exactly what you have to work with. You have to know your finances down to the last penny. You will need to list your assets and debits. You need to know how much money you have coming in every week and how much you have going out. Then you can figure out how much you can spend on investments.
Your Mortgage Broker
The next step is to contact a mortgage broker and get a pre-approved loan. Mortgage brokers have access to multiple lenders, not only in Perth but across Australia. You need to find one great mortgage broker and apply for one pre-approval. This process will include finding out your credit rating and finding out what amount lenders are ready to let you borrow. You may want to consider paying down some of your debt and reducing your credit card limits.
There are two great reasons to set goals. The first is that people with goals are statistically more likely to become successful than those who don’t set goals. The other is that a financial planner can sit with you and develop a plan for you to attain your goals. Then, it becomes a simple matter of executing the plan.
Are you looking to retire? How soon? How much money do you want to retire on? How many investment properties do you want? All of these are questions to think about when setting goals for your future.
Your Risk Profile
You have to know your attitudes towards risk. They will determine how aggressive your investment strategy will be.
If you want to succeed, you will need to start a budget and stick to it. After the basics, you can figure out how much fun you want to sacrifice now for a better future. Make sure to leave some room for fun, though.
Your plan is basically going to be the mechanism by which you accomplish your goals. Once you know what you want, use the next steps as a template for each property. Find a property that is within your goals. Do your due diligence. Get an appraisal. Then, make an offer and start negotiations.
Your Information and Resources
You need to have a lot of information at your disposal. Avoid get rich quick schemes. Use a qualified financial planner to help you. Learn as much about the market as you can, but make sure you run plans by your planner first.
Sorry, but property investing isn’t a hobby; it’s a business. Make sure you treat it like one. That means having a plan, executing it and making sure you have a great team to help you with your plan. Start with a financial planner, a mortgage broker, a buyer’s agent, a valuer and a solicitor.
Your Dream Team
At Purely Finance, our mortgage brokers and financial planners work together in our Perth office to help you become successful. We allow you to keep as much of the process “in house” as possible. We also have plenty of other resources and can advise you on where to find other members for your “dream team.”
Your results are going to be as good as the team you put together. Start with Purely Finance, where we can provide financial planning and broker home loans. We specialise in property investing and can help you get a leg up on attaining your goals for financial independence.
To learn more, call Purely Finance today: (08) 9453 8888.