10 Top Tips for Buying an Investment Property
- Strategic purchasing is critical – Take care to value the obvious – proximity to services and facilities for the occupier, are going to influence your rent, value, vacancy, growth and safety.
- Manage what you do well – sourcing, negotiation and overall strategy for your investing business and behaviours – let professionals do the property management.
- Mortgage brokers are like having a well-trained fullback on your team – they can see the right lines for the winger – that’s you – to run – so use them!
- If you buy solely on the basis of “I would live there” – you are probably excluding 95% of the areas where you ought to be looking for cash-flow.
- Property investment is a long term game. If you are going to buy a property for the long term – start as you mean to finish – do it professionally, in the right legal structures – go and get the right expert advice.
- Buying well at a fundamental level, and letting time do a lot of the work for you, is a useful and simple strategy for long term ownership of any investment.
- If you are investing in anything, trying to beat the market can work out both good and bad – so address it as a risk and reward business activity – or don’t do it.
- If you do want to be professional speculator, realise that you will actually be liable for your capital gains – and have been for a long time. It’s called GST and company tax, and just like any other business making a profit for the supply of goods and services, you will need to pay these. Get over it. Be in business, make the money, pay the tax.
- If starting again back in time as a younger person, many investors would say – conquer your fear of the unknown – learn earlier – so you can start earlier – and reap the rewards earlier.
- Just as in any market or business opportunity, there are others doing it – some well, some not, some with mediocrity, some will be stars. Whichever you want to be – just beginning, puts you ahead of a lot of other people!
To learn more read the book “The 15 Million Dollar Man” by Sean Wood,
click Property Investment and download 2 free chapters.