Getting Started: A Beginner’s Guide to Property Investing
Investing in property for the first time can be exciting and thrilling. It can also be very, VERY confusing, and not to mention scary. This is our future we’re talking about, and there’s money at stake. We don’t want to stuff it up.
As a beginner to property investing there are some important things to remember and steps to take if we want to get off to the best start.
TALK TO THE EXPERTS
It’s very common that when we think about making an investment or getting started with something new, we talk to people about it. These people are generally our parents or our friends. Unless you have some very savvy parents who are property experts themselves and have spent years staying updated with new market behaviours and patterns, the chances are their experience with buying property is going to be very different (and outdated) from what’s happening now.
Their concerns and strategies will not make sense from an investor’s perspective today and their advice may actually be the opposite of what an educated, experienced property investor would suggest.
The other group we commonly look to when making a big decision are our mates. If they’re good friends, with your best interests at heart, they will likely be equal parts encouraging and scare-mongering. All of their own questions and fears will factor into anything they say. And again, unless they are property experts, while it may be well-intentioned, the advice itself will be based on fiction, not fact.
If you want to invest in property but don’t know where to start, find some educated, experienced property coaches and mentors, like the team at Positive Real Estate, to give you the facts, statistics and strategies that you need to make smart decisions from day one.
IDENTIFY THE MARKET
Once you’ve made the decision to become a property investor, the temptation is to buy the first property you see on your street that’s for sale. Don’t!
This is all new to you, so exercise some patience and do some really great, diligent research. The right property for you to buy may not be in your street or even in your state.
Take some time to research real estate markets around the country. Look for areas where there is a high investment planned for infrastructure improvements or developments, as these areas are likely to grow and attract people. Find out what areas have consistently high capital growth, or are going through a phase of gentrification and are starting to become brands or highly liveable places.
Taking the time to find out where to buy is just as important as what to buy.
SET SOME GOALS
If you asked most people what they want out of life, their answers would be pretty similar and very vague. “More money, less work.”
Very few people take the time to really think about what their ideal lifestyle looks like and how much money – to the dollar! – they will need to get there as quickly as possible.
For property investors, this exercise is an important step in being successful. Particularly for the first property you buy, your aim should be to make some cash quickly that can then be recycled and used to set up your future nest egg.
In real estate, we call it investing in a property that provides cash-on-cash return. In simple terms whatever you invest, you want to be able to take out and put into another property as quickly as possible. This means the original property is costing you nothing, while generating an income through rent and capital growth. That’s the win.
FIND THE RIGHT BROKER
Having the right loan structure is pivotal in successful property investment and a great broker can help you do this. As well as ensuring your outgoings are sustainable from the start, the correct loan structure will enable you to start generating cash flow from your investments as quickly as possible.
Remember that a good property investor isn’t an expert in all things tax, loans, markets and predictions. But a smart investor knows people who are experts in these areas and goes to them with questions, seeking help and advice.
START WITH A PLAN
Before you even buy your first property, you should have a plan in place that guides you on what to buy, where and for how much. It also includes the next steps to build out your portfolio and the experts you’ll need on your team to ensure your success is sealed.
Get started on your property investing plan at one of our free property investing seminars.
Here you’ll discover the most crucial components you’ll need to consider when starting out.
Good property investors are nimble and adapt fast. They stay informed and enrol a team of experts to help them excel in times when others can’t. To find out how you can be one of those people, join our free property investing seminar.
Be equipped with the tools, resources and support to thrive, and not fall behind on your path to financial freedom – whatever that may look like for you.
Book your spot now and find out what you need to know about the current market landscape and how you can make it work for the ultimate wealth creation opportunities.
By Sam Saggers