By: Tony Rigby
1. Know your budget
Before investing in property it’s vital to have a thorough understanding of your cash flow. Also, ask your bank for a pre-approval of your investment loan, so you know how much you’re able to borrow before you start hunting for properties.
2. Buy in a growth area
Try to choose an investment property in an area where there is a strong demand for rental accommodation.
3. Be realistic about your investment goals
Are you looking for fast capital growth or wanting to hold the property long-term?
4. Look for realistic investments, not luxury
Remember an investment only has to be functional. Don’t get sucked into investing simply because something may be perceived as a luxury.
5. Invest with your head, not your heart
When investing it’s very easy to get caught up in emotions. Be sure you weigh up the pros and cons.