5 Things to Consider Before Investing in Property
There is lots to consider when thinking about investing in the real estate market. Here are a few things to think about before you jump in.
Get some advice about investing. What is the long term goal of your investment? How will you structure your loan? What are the tax implications? Who will own it? It is worth investing your time into researching prior to your purchase - there is a lot on the line if you make a bad decision.
How are you going to finance your purchase? How will you pull together your deposit? Do you have equity from other property that can be used against your new purchase? It is very important to select a finance professional who works for you and knows what they are doing. Like real estate agents, there are plenty brokers out there who aren't great at what they do.
Are you going to move into this property straight away? Are there any capital gains tax ramifications? Will the property be negatively or positively geared? Consider all circumstances and work out which gets your the better result for your situation.
Will you put your property onto the rental market? Will the property you purchase be popular on the rental market? What sort of rents will the property achieve and does this meet your required return? Investment properties need renters to pay rent, so make sure you find a property that is in an area of demand.
Look for trends. Where are the buyers flocking to in our southern capitals? Do we have similar sorts of communities here? Make sure you are constantly reading and researching to see what's next on the horizon.
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