Buying an investment property, or deciding to become a property investor, is exciting.
It’s so exciting that everyone you know will have an opinion about it. Your best mate, your colleague, even the postie. They’ll all have something to say.
And 9 times out of 10, what they say will be based on no expertise whatsoever. In fact, it’ll be complete fiction.
To be a successful property investor you need to seek advice from the experts and separate what is real and what is just plain speculation. Here are some fundamentals to get you started.
THE EMOTIONAL ELEMENT OF PROPERTY INVESTMENT
We should always spend or invest with our heads, not our hearts. But the truth is there is an emotional element to property investment – even if that’s being a bit emotional about your bank balance.
It’s important to make investment decisions based on education, expertise and evidence, and once you have decided to invest in property, there are some specific guidelines you can follow to take out the overwhelm and not be swept up in the emotions.
- Researching what kind of property you want and where.
- Figuring out how much money you need to achieve the lifestyle you want.
- Analysing markets, and coming up with an investment strategy.
Much of this is going to be very new, but there are experts who are trained to help get you started on the right path, such as our coaches and mentors at Positive Real Estate.
THE NITTY GRITTY OF PROPERTY ANALYSIS
When you have found a property that looks attractive to you, you need to do your due diligence and ask a range of very specific questions such as:
- Is this kind of property in demand in the area i.e. will it appeal to renters?
- Is the property structurally sound and functional?
- Will the property raise good rent returns?
- Will the local area be one of growth and opportunity, leading to capital value increase and high occupancy rates?
Again, if you don’t know the answers to these questions you need to go to people who have the education and experience to guide you in the right direction.
Buying building reports is a great start, but if you don’t understand what you’re reading, they’re not worth the paper they’re printed on.
In the same way, you need to hire the right property manager when it comes time to renting out your investment homes.
These property experts can help break all the jargon down into something that makes sense and get to work on ensuring your investment is being maximised to its greatest potential.
If you stick to these strategic buying decisions and ensure the property fits with your overall investment strategy, then the buying will come easily. Plus, you will no longer be at risk of being swallowed up in false information.
If you want to invest in property but still need support to separate the fact from the fiction, come to one of our free property investing seminars.
At this FREE seminar, our property investment coaches will provide you with a wealth of information, discuss our proven strategies for buying, and offer you free advice on your next best move.
By Sue Irons
CEO – Positive Real Estate New Zealand