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shutterstock_133658759Property investment can be a great way to build your wealth. Though the thought might seem daunting at first, property investment can prove to be an exciting journey for those entering the market. To start your journey off on the right foot, here are some tips to help you kickstart your property investment goals:

  1. Set your objectives. It is impossible to achieve an outcome without first having clear goals and objectives in mind. When first setting goals, it is important to ensure the targets you are setting are realistic. Creating a vision board can help you do this, and help you keep your eyes on what it is you want to achieve. Once you define your goals, you will have a clear vision of what direction to take, where and how to begin, and when to stop.
  1. Develop a plan. Every successful endeavour starts with a plan. Now that you know your property investment objectives, it’s time to create a plan on how to turn your goals into reality. Your plan should cover your current situation, where you want to be in the future, the steps you plan on taking to get there, and a timeframe. It can also be useful to create a backup plan which can be utilised if the first plan doesn’t work out.
  1. Know your budget. As part of your business plan, you should determine how much you are willing to spend and the amount you can borrow for your property investment. Don’t forget to take into account possible expenses in any renovations, repairs, maintenance, and additional costs. A mortgage broker can help you work out what you are able to borrow from lenders, and therefore budget accordingly.
  1. Do your research. As a rule of thumb, it is recommended you do not buy the first property you see. Take the time to look at different types of properties available on the market. This will allow you to compare and contrast the features of each property. Aspects worth considering include location and the track record of the developer.
  1. Have the property inspected. Part of the process of purchasing a property is to ensure the property you’re looking to buy is in good condition. If it is in need of repair – as often is the case – it will be helpful to research how much the cost will be to renovate the property accordingly. Being an investment which can be used for growing your wealth, it is important to hire a professional property inspector who will be able to provide you with a thorough assessment.
  1. Seek tax advice. Property investment is a serious business. As it involves a great deal of money, you need to ensure you have your tax affairs in order. Work with your accountant to do this, and then seek the advice of a mortgage broker, who can advise you on the full costs and obligations of your loan. This will provide you with a better understanding of your taxes and future costs, as well as new tax breaks and refunds that may be possible with your property investment.
  1. Take out insurance. Landlord insurance protects a property owner from possible financial losses from their rental properties. It typically covers the investment and rental income, and losses from natural disasters. Remember to compare landlord insurance quotes for different types of properties in order to get the best cover possible.
  1. Think about management. You have two options: You can either manage your property including basic repairs and maintenance yourself, as well as dealing with your tenants, or choose to hire a property manager who will do the work for you. If you prefer to manage your investment yourself, know your responsibilities and rights as a landlord. Meanwhile, if you highly value convenience, hiring a manager may be better suited for you.

These 8 simple tips are just some of the things worth considering when kickstarting your property investment goals. It pays to be diligent when it comes to investing, so do your research and consult the experts. With enough knowledge and proper guidance, you will be able to achieve your goals and improve your chances of being a successful investor.

Launch Finance specialises in accessing finance for property investment. If you are looking to kickstart your property investment goals, speak to one of our friendly brokers today.