Both first-time and seasoned property investors should establish what they want to achieve with their property. This stops them taking a set and forget attitude and instead, gives them a focus and a roadmap that will inform their decisions down the track.
Here are four tips to get your started on creating property investment goals.
Do the maths
Property investing is all about the numbers. You need to understand your budget and your cashflow. You should understand what you can afford to borrow for your investment property and what your monthly repayments will be. You also need to factor in other expenses such as renovations, repairs and maintenance costs. The total costs will allow you to see if you need to make any lifestyle changes to be able to afford the investment property.
Set a timeline
Consider how long you plan on owning the investment property. It could be five years, 10 years or 30 years. Will you be purchasing other properties in that time? If so, you should specify when you’ll buy and how long you intend to keep each one. Perhaps you are a first home buyer and your investment property is a strategy to enable you to buy an owner-occupied home. You should set yourself a timeframe for when you expect to achieve that.
Think about why you’re investing
What are your reasons for investing? Are you looking for capital growth or rental income? Perhaps you’re looking to build a portfolio of properties. Make sure your strategies and goals are in line with the bigger picture of what you want to achieve.