First-time property investor? Read this first.

Investing in property can be a nice retirement plan, an extra source of income, a method for minimising tax or a way to secure your family’s future. But it is a big investment – possibly bigger than buying your own home! If you’ve never bought a property to rent out before, you probably don’t know where to begin. So here are 5 things you need to know before you start investing in real estate.

Don’t take it personally

When choosing a property to invest in keep in mind that this is strictly business, not pleasure. You’re not going to be living there so it really doesn’t matter if you prefer bright paint colours, can’t live without a pool or adore Edwardian-era architecture! Aim for a property that suits the lifestyle of your target rental market and one that aligns with your investment goals from a financial perspective. Make a literal checklist of what you’re looking for before you even start your search, then stick to it.
“Location, location, location” is only the beginning
When looking for a place where renters want to live, think about the streetscape and the wider neighbourhood. Consider existing or planned infrastructure including a range of schools, transport and easy access to services. How far is it from the CBD or employment hubs? Does the layout of the home or floor-plan suit renters’ lifestyle? These factors mean it’s often easier (let alone cheaper) to search within emerging suburbs over established ones and they are often master-planned and designed to include everything people want and need.

Read everything

We know you blindly scroll through terms and conditions before ticking “agree” every time. Do not be tempted to do that now. Take the time to read every single page before signing. Don’t be afraid to ask for more time or to walk away. Write down any terms you don’t understand and have your advisors explain them to you until you feel like the expert. When in doubt, get a second opinion (we mean a professional’s, not your know-it-all mate’s). It can also be handy to record any conversations you have with banks, brokers and agents for future reference on your phone – in some states you need to ask first) or take meeting notes while information is still at the forefront of your mind.

So you want to be a landlord?

Good property management is hard to find. Even if your property manager is effective and efficient, you’ll still have to devote a bit of effort towards managing maintenance issues, paying certain bills and chasing quotes from tradespeople. You may also have to factor in major tenancy issues or extended vacancies. Many investors prefer a brand new build or a house and land package as, not only are they attractive to renters, but there should be far less maintenance from the outset. Before you invest do consider if you have the time – and the temperament – to be a landlord.

It really pays to ask an expert!

Look for a financial advisor who has experience in property investing and especially one who is independent. Check if they’ll be taking commissions or fees from anyone other than you. Independent advisors may charge higher fees, but they will be able to explain how much you can and should spend on a property, if it’s the right time for you to invest (based on your personal circumstances) and they’ll help you navigate all the tricky legal and taxation aspects of purchasing your property. Having an expert on your side could be the very best investment you make on your property investment journey.

Offering a combination of affordability, abundant opportunities and the promise of a bright future, Monument offers exceptional value for an investor. Don’t miss out on your opportunity to build your dream in the heart of the growing west. For the latest in investment information, visit the Sales Team at 1392 Plumpton Road, Plumpton, or call them on 1300 040 563.