Thinking about investing in property? Are you looking at online property sales? Did you know property investment can grow your wealth? But it doesn’t come risk-free. There is a few risks and benefits that you need to evaluate before making any decisions to invest in property.
If you are unsure about what is involved, seek the advice from a professional who can look over your current situation and your goals to see where you stand.
Assessing the risk
Property investment has a lower risk when compared to other situations like shares in the stock market. When it comes to the time of working out the risk get a cash-flow analysis done by a financial planner.
Things to consider:
- Are you investing in overseas property or local?
- The type of investment listed or unlisted
- Your investment strategy
- What property you are looking at (location, structure, price range)
- The demand for the type of dwelling
Getting professional advice
You need to seek out professional advice when it comes to investing in a property. Get advice as to whether the home will be a valuable investment.
Here are the professionals you need to add to your list of contacts:
- Financial planner
- Property expert
- Mortgage brokers
- Your accountant
- Buyers agents
A mortgage broker will help when it comes to comparing home loans to ensure you are getting a deal that suits you. The accountant will access your finances and do the paperwork involved in the property. You will need a solicitor at the end to prepare legal documents before you sign off. Research as much as you can. There are plenty of properties out there. Knowing what you are getting into first can help to avoid mistakes and financial burdens.
Firstly, develop a property purchase strategy and know all the processes that you will go through such as identifying a plan to access the finance, signing the paperwork, getting tenants in. Before you start comparing the different loans do a budget first and work out how much you can afford to pay back.
Some banks will offer you a pre-approval this means you are given a price range you can get. This is important to know the limit you can borrow when looking for houses. You can look online for potential investment properties where you can filter the price range and the type of property you are looking for. This is where a buyer’s agent can be of help at finding something suitable and they have years of investment experience. Hiring a surveyor can help with the tax deductions that you get from the property. When it comes to putting tenants into your property you need to research and know your responsibilities as a landlord and the rights that the tenants have.
Your wealth can grow substantially with the help of investment properties. Once you are successful with one investment property you can grow from there and have a pile of investment properties bringing money into your pocket. As long as you research everything thoroughly and seek advice from professionals you will be fine. All successful property investors started out as beginners.