AFTER the purchase of your first home it can be hard to imagine getting into even more debt and buying an investment property. However, as many people have discovered, the sooner you get onto the property ladder, the sooner you should be able to watch your equity grow and consider investing in the property market.
Leon Owen, principal of the RAMS Home Loan Centre Toowoomba franchise, meets many customers looking to get a foot in the investment property market.
"Over the years, many people have built tremendous wealth in the property market," he said.
"Consistently, they say the same thing, that it takes time and patience to build up equity.
"When it comes to property slow and steady definitely wins the race."
Here are Leon's tips for investing in property:
- Have a strategy and stick to it.
- Every investor should have a strategy that reflects their personal circumstances and risk profile.
- Go your own way.
- Savvy investors research the market and make their own decisions regardless of hearsay.
- Try to stick to your strategy regardless of what you hear from friends, relatives and the media.
- Choose the right property.
- Properties that need work cosmetically may be preferable to ones where there are major structural repairs required.
- Sometimes a fresh coat of paint, some new carpet, a little styling, or an update of fittings is all that is needed to increase a property's value, if the property is structurally sound.
- Consider obtaining a pest and building report to ensure there are no hidden structural issues with the property.
- Make sure it rents easily.
- To ensure your property is tenanted look at properties that the majority of working people could afford to rent, in an area where they want to live.
- Consider proximity to shops, schools and transport.
- Invest in professional expertise.
- No matter how many properties you've bought you'll always benefit from professional advice.
- Every property investor should seek the advice of a good accountant, mortgage broker, financial advisor, valuer, pest and building inspector.
- Renovate wisely.
- When you are ready to sell, consider the buyers in the market for your property, what they want and what they'll pay for.
- Research other properties on the market and think about how they compare to yours.
- Good styling may make a big difference to your sale price.
- Many an average property has sold for a premium when it has been renovated well.
For more information, advice or assistance with your investment loan needs, contact RAMS on 13 RAMS - that's 13 7267 or go to RAMS.com.au.
Update your news preferences and get the latest news delivered to your inbox.