Top 10 Tips Before Buying an Investment Property from Properties4U

10 TIPS BEFORE BUYING AN INVESTMENT PROPERTY FROM PROPERTIES FOR YOU 1. CHOOSE THE RIGHT PROPERTY 冷 Do your research, check out what homes have recently been sold for in and around the area and then you'll discover that you’ll become more aware of a property's value and how much people are willing to pay. 2. BE FAMILIAR WITH YOUR CASH FLOW! Investing in property is a proven path to long-term wealth. Make sure that you can afford to maintain your mortgage repayments over the long term, the critical time is in the short to medium term as generally rents and wages go up over the longer term. 3. HIRE A GOOD PROPERTY MANAGER. 合 Make sure that your property manager holds a real estate licence. Property managers keep things in order between the landlord and the tenant. A good property manager will let you know when you should review rents and when you should leave rent the same. 4. UNDERSTAND THE DYNAMICS OF YOUR MARKET. Consider what other properties are available in the immediate area and speak to as many local real estate agents and property manag- ers as you can - they'll let you know if one side of a street is considered superior to the other and what tenants are looking for. 5. PICK THE SUITABLE TYPE OF MORTGAGE Keep in mind that structuring your loan correctly is more critical than saving a few dollars and should be done with the help of an experienced and competent mortgage broker. Always avoid mixing up investment loans with your home or personal loans. 6. USE YOUR EQUITY WISELY Equity is the amount of money in your home that you actually own. This is calculated by working out the difference between what your property is worth and what you owe on % the mortgage. Leveraging equity in your home, or equity from another property investment, can be an effective way to buy an investment property. 7. LEARN ABOUT NEGATIVE GEARING With negative gearing, you may be able to claim a deduction for the full amount of rental expenses against your rental and other income, such as salary, wages or business income, when you complete your tax return. 8. CHECK THE AGE AND CONDITION OF THE PROPERTY Engage a professional building inspector to conduct a thorough inspection of the proper- ty, to find any possible problems and for bud- geting initial repairs. 9. MAKE THE PROPERTY ATTRAC- TIVE TO TENANTS 合 Engage a professional building inspector to conduct a thorough inspection of the proper- ty, to find any possible problems and for bud- geting initial repairs. 10. TAKE A LONG-TERM VIEW AND MANAGE YOUR RISKS Remember that property is a long-term investment and you should not rely on property prices rising straight away, if it does happen treat it as a bonus. The longer you can afford to commit to a property the better and as you build up equity you can then consider purchasing a second or third investment property. THINKING ABOUT HOW YOU CAN SECURE YOUR FINANCIAL FUTURE? CALL US NOW TO START YOUR ADELAIDE PROPERTY INVESTMENT TODAY! Phone number: +61 8 7071 8000 Properties4U Email address: [email protected] Website: http://properties4u.com.au inspiring wealth creation tol %24