TIPS FOR FIRST TIME PROPERTY INVESTORS LOOKING TO ENTER THE REAL ESTATE MARKET
TIPS FOR FIRST TIME PROPERTY INVESTORS LOOKING TO ENTER THE REAL ESTATE MARKET

Investing in real estate for the first time is exciting however property investment can be super overwhelming for those without the right guidance or expertise in their corner.

Here we break down the process and explain the steps involved for first-time investors.

 

How much can I borrow?

Engage your Mortgage Broker to determine your borrowing capacity. It is also a good idea to speak with a trusted accountant to assist with your personal cash flow and ensure that the proposed investment is a viable option for you.

Put your finance in the hands of an expert with First National Neilson Partners' in-house finance department.

 

House with dollars accumulating beside it

 

WHERE should I invest?

Determine the suburb you want to invest in. The southeast corridor of Melbourne has shown excellent growth over the last few years and has a number of popular suburbs that have been sought areas for property investors. Consider locations that are close to good schools, shops, and public transport as these will always be high in demand.

 

What should I look for in an investment property?

With so much real estate for sale on the market, it can be overwhelming to decide what to buy.

Some things to look for are new carpets, freshly painted homes, heating and cooling, dishwasher, secure car accommodation, or even things as simple as built-in wardrobes.

Keep in mind that a younger property (should) requires less maintenance. Properties less than 5 years old also benefit the most from a tax depreciation schedule, another topic for discussion with your accountant.

Related articles:

Achieve a better rental yield with these simple tips
What is wear and tear at an investment property
The benefits of investing in commercial real estate

 

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How do I choose a good property manager?

Once you have secured a property, it is time to source a good property manager. The right property manager will ensure your investment is managed efficiently and correctly, and that the long-term value of your property is protected.

Selecting a property manager can be daunting and confusing. Keep your eye out for our next blog which will outline what you look should for in a property manager.

When engaging a property manager to handle your valuable asset, it is imperative that you trust them. It is also important at this stage to engage a high-quality Landlord Insurance company and Quantity Surveyor to assist. Your Property Manager will have recommendations.

There’s a saying, “if you think experts are expensive, you don’t want to know how expensive an amateur is”.

 

What if I'm leasing out my current home?

What if you have lived in your first home for some years and are now looking to move on, perhaps your planning a family and need the extra space so wish to upsize your current home, Are you in the position to keep your first home as an investment?

If you are looking for a loan on your next property, your bank may require a rental appraisal letter for your current home. First National Neilson Partners or any real estate agent with a property management department will be able to organise this for you.

A trusted agency will be able to discuss rental potential, and any recommendations to increase your rental return. They will talk you through the process and answer any questions or concerns that you may have.

Speak to Neilson Partners BDM Lily Thompson to discuss your options.

 

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What else do I need to know about investing in real estate?

Know your end goal and have a conversation with your property manager so they can help work towards the same goal as you.

Is this a long or short-term investment property?

Do you plan to lease it for 1 year before moving in yourself or do you plan to use it solely as an investment property for the foreseeable future?

It is also important to approach your investment as a business and not adopt an emotional connection. While you can still be an empathetic human, this will help make decisions such as rent increases, notices to vacate, or discovering wear and tear after a 5-year tenancy easier.

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Now what?

Now that your first investment property is up and running with your property manager, sit back and relax.

If your goal is to grow a property portfolio, keep in contact with your Mortgage Broker to determine when you can afford your next property. It is also valuable to have a trusted sales agent in your corner to notify you of one or off-market opportunities that could become your next investment property.

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