When buying an investment property, it is important to have a strategy in place that encompasses your end goal.
There are many different aspects to developing a property strategy, and this will look different for each individual investor. Some fundamental questions to ask yourself to help in determining a strategy that is best for you.
Why?… Often we find the answer to this question is because all my friends are doing it, to have a property for the children to use whilst studying, my parents have advised me to, however the real question is why do you want to invest in property? Or more simply, what is your end goal. It’s important to set goals and break them down into short, medium and long term to ensure the optimal outcome is achievable.
When?… Understanding your timeline is an important factor when investing in property. Is now the right time for you to invest? Do you have the income and cash flow needed to support a portfolio? Have you obtained the correct advice? Often investors buy a property before determining how they are going to sustain it or have the overall picture.
What and Where?… Knowing the type of asset class and locations that fit your strategy and what is achievable within your budget, without compromising your long term goal. You need to have a clear understanding of this, it can be different for each individual investor.
Fundamentals to consider when investing.
• Owner occupier appeal
• Close to amenities and transport
• Area gentrification
• Point of scarcity
• Proven historical long term growth
• Low vacancy rates
• A-grade floor plan
• Attractive to multiple demographics
Who?… do I need in my team to ensure my end goal is achieved with confidence? Industry experts such as a mortgage broker or bank, solicitor or conveyancer, financial planner, accountant, building and pest inspector, buyers advocate and property manager. A professional team with strong industry knowledge, who you can trust to make your journey successful.
Key points for getting game plan ready
• Begin with the end goal in mind
• Arm yourself with the right advice
• Surround yourself with a knowledgeable and experienced team
• Have a clear strategy in place
• Understand your financial position
• Feasibility of asset class for budget and end goal
