I’m 20y and within the next two years I will be looking to buy my first investment property. What I would love some help with is…well really any tips and hits for someone getting started like what houses to look for, what to avoid and be aware of.
All help will be greatly appreciated,
Thanks.Hi BelleStar
The best advice is to spend this time learning. Read lots of IP books, frequent forums like this and start saving a deposit. There’s a number of good authors to look up – Lomas, Somers, Yardney…the list goes on.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi BelleStar,
Admirable aims and goals for sure.
A key aspect of being a property investor is borrowing money. This should be your primary focus at this stage.
Maximise your chances of being able to borrow money by establishing a savings pattern, ensuring you have no bad debts, haven't taking out personal loans and/or motor vehicle loans which reduce your serviceability, keep any credit card (if you need/want one) limits as low as possible and sweep them clean every month if you have a card.
At the same time make sure your employment is permanent and you are establishing a solid work pattern. Many banks and mortgage insurers get nervous about people who regularly change jobs or who are on casual or temporary or on trial.
You should be aiming for a reasonable size deposit approximately 10% + purchasing costs 5% and with some spare left over.
While you are doing all of this spend some time learning, learning, learning.
Hi BelleStar,
the other thing to do is to surround yourself with people in the know for example you want to have accountants bankers and lawyers who are also in property investments with portfolios of their own. The reason for this is b/c you will then know that they know the best way to go forward and also how to minimize your outlay and increase your return.If you are going to purchase your first property then take advantage of any government grants that you can while they are still offering them. But be careful where you buy and what you buy.
Look for properties that are not on top of train lines or major roads but are easily reachable from the property. Before you buy the property go there at different times of the day to ascertain what the neighborhood is like.
It should be close to schools, Public transport and shops. If you use the 1st home buyers grant then live in it for the first year and rent out the rooms to help with paying it off as soon as possible.
The aim is to have the property paid off as soon as you can so that you can start to leverage off it. The other suggestions above are definitely worth following.
There are many paths to rome. Some are smoother than others.
Hello BelleStar
The best tip I can provide you in real estate investment is invest first in yourself.
Once you gained your education first, the flood gate of real estate investment property will open up.
As you gain more and more knowledge you become better, better investor.
But, remember true wealth comes from applied knowledge.
Good luck in your education.
Cheers Leo
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