Investing in property is a common way to accelerate financial independence and to retire early. By producing multiple streams of passive income that will support your desired lifestyle you will also minimise tax and have the potential to pay off your home loan sooner.
It can be confusing and difficult to build up your financial portfolio, particularly if you are new to investing.
However, it is not as complicated as it may seem when working with a team who have successfully assisted many everyday Australians to do just this.
In this blog, we’ll discuss what you need to know before investing in property and how you can get started.
1. Assess Your Borrowing Capacity
Firstly, you need to get an understanding of what your borrowing capacity may be by working with one of our brokers who can assess your current financial situation.
As a sidenote, if you already have a home loan it is essential to regularly review it to ensure it is adaptive to your changing circumstances and the ever-changing economic climate. Discover more HERE for more information.
2. Create a Plan That Incorporates Your Goals
What would you like life to look like in retirement? Think about where you are living, who you are spending time with, what kind of car you are driving, what income you would like to live on each week.
It is important to know what you are working towards.
Then reverse engineer your plan to determine how many assets you will require and in what timeframe. Discover more HERE for more information.
3. Understand What Determines a Good Investment Property
There are certain things you will want to look for when finding the ‘right’ investment property. Here at Wealthology we have a very strict criteria and some of the more important key factors are:
- Schools
- Shops and local amenities
- Jobs
- Transport
Other key indicators you should focus on are:
· Supply – a large number of rental listings in the area may mean that demand isn’t there and there could be an oversupply of properties for rent.
· Green spaces – block sizes are getting smaller and smaller these days with the demand and price rises so we like to help our clients invest in properties close to parklands and parks for the kids and the doggos.
4. Understand How Property Cycles Work
There are four main stages of a property cycle – boom, slowdown, stabilisation and recovery. It’s important to understand how the Australian property cycles work and how investors position themselves to take advantage of the next phase of the cycle. Discover more HERE for more information.
5. Work with a Mentor
If you’re new to property investment, it can be daunting to know where to start. There are so many possibilities, and so many things can go wrong.
It’s tempting just to take the plunge and hope for the best – but this is not a good idea.
When learning how to invest in property, you will inevitably make mistakes. But there are ways that you can reduce the likelihood of making costly mistakes.
Ultimately, successful investing comes down to the fundamentals and working alongside a team that specialises in helping people create real financial independence.
Our team is here and ready to help you build a more secure tomorrow. Reach out to me personally – leonie@wealthology.com.au
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