Property investment advice is everywhere, so where do you begin when you want to get involved in the real estate market for the first time? It can be challenging to weed out the information you need from everything that’s out there. The following tips can help you get a strong start as a new real estate investor!
Plan & Research First
You can’t invest with confidence until you know where you stand financially. Make sure you have budgeted your incoming and outgoing funds, so you know how much you have to work with when you buy. This will also ensure that you haven’t forgotten about anything that could cause a problem later. Have all this information organized so you can easily access it when you apply for a home loan.
Create Investment Goals
How do you know if you are successful if you don’t have anything to work towards? Make sure you have well-defined investment goals set before you begin. That includes a deadline for each goal. This gives you a way to measure where you stand and what’s working (or not working). If you find you are not meeting your goals, it may be time to re-evaluate your approach and make changes.
Location Makes a Difference
Where you plan to invest can make a difference in the return you get. Make sure you are choosing an area that is showing promising growth and rising home values. If you plan on investing in apartments, then the suburbs are usually your best bet. Finding a location that’s close to the central business district is a smart way to go. If you plan to invest in a stand-alone home, then you may want to look further out. A good rule of thumb is 4 to 8 km away for apartments and 6 to 12 km away for houses.
Be Prepared to Pay a Stamp Duty
The Stamp Duty frequently blind sides new real estate investors and is sometimes missed by property investment advice websites. This is a tax that usually has to be paid upfront when buying property in Australia. The Stamp Duty is usually equal to 2% to 3% of the total purchase. The rules vary by state, so make sure you know what is required before you buy.
State Land Taxes May Change
You should monitor finances and adjust as needed as you go. Some things, like the land tax, may increase over time. In some states, the government imposes land taxes that are paid annually. If your property holdings grow, your land tax may also increase.
There’s No Substitute for Expert Property Investment Advice
There are many things to consider before you buy real estate. Some of those things can make or break a sale. A seasoned professional can provide accurate, relevant suggestions and recommendations that come from years of experience. They will also have a better understanding of laws, taxes, interest rates and other factors that may change over time. Catrina at Seajay Mortgage Brokers is available to provide sound property investment advice that can help you earn more. Get in touch today to discuss your real estate finance needs.