A strong property market, investor tax benefits, uncertainty in the stock market and superannuation are just some of the reasons people are currently looking to invest in real estate.
If you are thinking about investing in property, think about what you want from your property investment. Are you after something to live in eventually, to make an income now, or are you looking for an investment for the future?
Investing in property does take some planning so you can use your investment to work towards your goals.
Here’s our investor checklist to help you on your way:
Know the True Cost
It’s not just about knowing how much you need for a deposit, remember there are other costs involved with buying a house. Online tools can help you calculate stamp duty, but there will also be conveyancing fees and extras you may have to pay, such as search fees and pest & building inspections.
Seek Professional Advice
While there is a lot of information available on the web, make sure you seek professional advice. A mortgage broker or your bank may help you get a good deal on a mortgage and a good accountant will to tell you how to structure the investment to best suit your budget. A financial planner will help you with your long term finances. If you’re looking at renovating a property, consult with a trusted builder to give you some idea of costs.
While interest rates are at a historical all time low, they will go up eventually. You never know what is round the corner, so always make sure you’ve got a bit extra for rate rises, unexpected repairs, special levies from corporate bodies or anything else which may pop up.
Where and What to Buy
Managing Your Property
Have you the time and resources to manage a property yourself? Do you know where to find tenants, how to interview them and what to do if they don’t pay on time? What about maintenance? While you can manage your property yourself and possibly save yourself some money, do you really want the hassle? As well as saving you time and stress, using a property manager has other benefits.
The Time is Now
Once you’ve sorted out your goals, looked at your budget, know what you can afford, and made your plan, start looking. There is never a good or bad time to buy – although there are some uncertainties about negative gearing at the moment, if you’ve made your plans, then go for it! Newcastle, Cardiff and the surrounds have many great properties with investment potential.
Whether you’re looking at Newcastle, Cardiff or elsewhere in the Hunter Valley region, we’re here to help you realise your property investment dreams. If you want to know more about buying an investment property and what to consider, or you’re interested in the many benefits of our property management services, give us a call on 02 4954 8833 or pop into our office and our experienced team will be happy to help out.