So, our team at SOMO helped you get into your first home, your dream home! We did the research together and found you a home in the best suburb with the greatest amenities. You are living in the perfect space of your own. But maybe now you are starting to feel that itch to take the next step? That next step, you ask, is buying an investment property.
We have so many success stories of first home buyers finding their dream home. After a while, once they have gotten settled, they come to us asking about investing. For many, this is a natural next step.
Investing one way or another is becoming more popular among the generations. Many young people are beginning to look into how they can invest and set themselves up for the future. Investing in property may seem like a safer option than going down the stocks route. Still, there are many things to consider before making the leap.
First of all, you need to ask yourself some important questions. These will help gauge what kind of property you will buy and help with a management plan.
- Why do I want to invest in property?
- What is my long term goal?
- Do I hope to own multiple properties in the future?
- Do I want to renovate an old home or buy a home I can lease immediately?
- Will I invest in a house, apartment, or unit?
- Do I have a steady enough income to support myself and keep up with repayments if I have no tenants?
Buying a investment property can be great. One of the best parts is you will earn money from rent while the property is tenanted. Your property also has the chance to increase in value through capital growth. Investing in something physical and stable is often comforting, unlike investing in stocks that aren’t visible. You also don’t need any special skills or a sound understanding of how the investments work. This is for anyone.
Like with everything, there are downsides. Property is expensive, and the rental income may not cover the repayment costs as quickly as you need. If you don’t have a tenant for some time, this extra cash flow will cease. If you don’t do your research into the area and amenities, the resale value could decrease. So, it definitely doesn’t all come easily, and you have to put in the work and be in the long game.
We suggest you do your research into the area and find a suburb that you can see continuing to do well in years to come. Don’t just buy a house you love, be analytical about it and think about its future worth. You need to purchase one that will stay in demand in the future.
No investments are quick and easy. You have to be in it for the long haul. You won’t invest today and be a millionaire tomorrow; it just doesn’t work that way. There are ongoing costs, times of no tenancy, and fluctuations in the market. It can be a volatile process, so be patient and persistent.
We also recommend getting an accountant who can help manage your finances and help you with the cash flow when you start. There are many costs involved in this process, so make sure you can handle it.
Chat to someone who understands the market. Diving into it alone can be daunting. Talking to someone in the business who knows the city back to front is the best place to start. That’s why we are here to help. Our Property Advisors help many clients get started on their property investment, so let us help you too. Give us a call on (08) 9202 9292 today so we can chat about how to set you up with your perfect investment property. Let’s find you an investment space of your own.