1. Get your finances and pre-approvals in order
Before you even start looking to buy an investment property, sit down and get a clear idea of where you are, money-wise. List your income, expenses and assets. Work out how much you realistically have to invest.
At this point, it can be easy to assume you don’t have enough money to buy an investment property; however if you have a stable job and a good employment history, there are a host of loan options to choose from. There’s bound to be a solution that suits you. The important thing is to be aware of your financial position before you commit yourself.
When you are ready to move ahead, it’s time to source and secure a suitable loan. It may be tempting to do this yourself, but we recommend engaging a property investment finance professional or broker to help you select – and, crucially, get pre-approval on – a loan that suits your circumstances and strategic objectives.
Find out more about finance and affordability, including how much you’d need to invest in a Pindan property, or check out the range of other property investment options available through Pindan Capital.
2. Understand your property investment goals and attitude to risk
You need a property investment strategy. You need to know why you are investing in property – what you want to achieve, and when – and to do that, you need to be mindful of your attitude to risk.
While many property investors are generally aiming to build their wealth in the long term, everyone is different. You might have a specific timeframe or a lifestyle in mind. 5 years. 10 years. 20 years. Retirement. Semi-retirement. Do your best to set a clear goal. Once you know what you’re aiming for, it’s easier to plot a property investment journey that will get you there.
When it comes to assessing your attitude to property investment risk, be honest with yourself.
How much risk are you happy taking? You don’t want sleepless nights worrying about your property investments. You need to be comfortable with your investment, and you need to factor this into your strategy and goals.
3. Nail down your budget and property purchasing plan
Before you invest in property, invest in some budgeting software, to help you stay on top of your income and outgoings. Keeping abreast of your financial situation is vital, and enables you to plan for the future and ensure you’re never caught short.
Which brings us to your purchasing plan.
You’ve set your strategic property investment goals. You know what your property investment or portfolio needs to achieve. Now you need to make it happen, setting clear criteria for the investment property or properties you intend to purchase, researching the local market, building and refining a shortlist of suitable properties, then making an offer and negotiating.
Set out your objectives, plan and parameters from the get-go, not just in your head, but in writing, then use your plan to keep yourself on the right path and in check.