Have a plan
When you are looking at investing in real-estate to better your financial future it is important to have a plan before you jump in. Below are some questions you might like to ask yourself.
- Are you going to hold onto the property for the long haul or are you looking for a short term gain? This will govern what areas you buy in to maximise your yield potential.
- What do you enjoy doing in life? The amount you invest will be directly affected by the disposable income you have. The more you like to spend on extra luxuries the less you will have available to invest.
- Are you a risk taker? How much exposure would you like? This may be led by how many years you plan on investing for. If you are leaning more towards a long term strategy a higher risk portfolio might suit and conversely a lower risk portfolio for short term investors getting close to retirement.
- Are you looking for good capital gains or good cash flow? Cash flow keeps you in the game, Capital gains get you out!
- Are you looking for property you can add value to later, or are you looking for a turnkey property? This will help narrow the field of properties you will look at.
- Have I protected myself enough in the event that something goes wrong? (Mortgage protection insurance, income protection insurance, disability insurance and landlords insurance)
Once you have a clear plan in mind the next step is to contact people that can give you advice. In Part Two I will talk about borrowing power and knowing who to get the right advice from.
If you have any questions call or email Tara on 0447277321 or email@example.com