Tips for Buying Your First Investment Property
In this blog, we share 5 tips for buying your first investment property from the team at River City Conveyancing.
There are many wealthy people who made their fortune from buying to let, as property is always in high demand. If you have decided to enter into the commercial side of buying and renting property, there is much to consider before you start looking at potential houses.
Any property is going to be a considerable financial investment up-front, which therefore demands a lot of forethought and planning.
The location will very much determine the rental returns you can expect to receive and for many investors, buying a property in need of renovation is the preferred route.
Here at Gott Realty we collate up-to-date real estate trends data to track the property growth of key North Brisbane suburbs. You can view Gott Realty’s property market reports here.
Tips for Buying Your First Investment Property
1. Crunch The Numbers
Calculate the mortgage payments on the property and balance that against a reasonable monthly rental, which will give you an idea of your profit margins. Of course, there are many other expenses, legal fees, maintenance and upkeep but a few of the duties of a property landlord. There are affordable property lawyers in Brisbane who can handle things on your behalf, as well as preparing tenancy agreements and the terms and conditions that you would require.
2. Calculate Your Total Initial Investment
This would include the price of the property (plus taxes and stamp duty), renovation and refurnishing, and don’t forget your legal fees. Once you are sure you have that covered, you can then begin to implement the plan. Your lawyer can help you work out your total investment, and with his experience, it is unlikely anything will be overlooked.
3. Source a Good Local Property Lawyer
They will take care of the conveyancing and setting up the purchase, while also offering sound advice, especially for the first-time buyer. This is a complex business arena, coupled with the fact that the property owner takes on a heavy responsibility, and you will greatly benefit from the experience your property lawyer has gained.
4. In for the Long Term
Property rental is definitely a long-term investment, which should be a minimum of 5 years, and if you have chosen your location well and the economy continues to be stable, there isn’t any reason why the investment won’t pay handsome dividends for you and your family. If things go well, you might decide to acquire a second and third property – which is how many property moguls began. Of course, once the mortgage is paid off, you can expect to reap the rewards of your efforts, and for some canny investors, ten years is enough to amass ample wealth.
5. Consider Interest Rates
If the rate of interest were to rise, would you be able to weather such a storm? It might be an idea to take a look at some online forecasts, for at least the next 3 years, which at least gives you an idea of which way the economy will turn.
Whatever happens, you will need to forge an alliance with a reputable property lawyer, who can easily be found with an online search, and with his help, you can begin to build your property empire.
If you’re looking for a real estate team that is honest, respectful and always acting in your interests, request a free no-obligation property appraisal today.
Our team has unprecedented access to local property data and insights, and we are here to help you sell your property for the best price possible with the least amount of stress.
Gott Realty service Albany Creek, Eatons Hill, Cashmere, Warner, Lawnton and Bray Park and many more areas across North Brisbane. Learn more here on our blog.
Contact Steve on 0419 777 577 or enquire online here.
