Getting your 1st investment property could be a daunting prospect, following these eight actions may have you effectively on the road to results.

Make a team of experts to support you

Examples of the type of professional which you will need to possess on your group are solicitors, accountants, finance brokers, property coaches/mentors, property managers, valuers, quantity surveyors and insurance coverage brokers.

Establish your borrowing position

Make contact with your mortgage broker and ask them for an assessment of one's borrowing position. Figuring out your borrowing position and what you could do to improve it assists you to strategy and work out the sort, quantity and profile of the properties which you can afford to purchase.

Establish the proper entity to buy your property in

The query you may subsequent face is what entity you need to buy the investment property in. Should it be in your personal name, your spouse's, child's or partner's name? Or should really it be in a trust (hybrid, discretionary or unit trust), a company or a mixture with the above?

Also, how a lot of properties should really you buy in the one particular entity and why? How should really you structure the acquire to provide maximum asset protection even though in the identical time giving you with maximum leverage, minimum tax and also the finest return on your investment?

Establish the best buying tactic

What type of property really should you invest in? Should really it be a capital growth (negatively geared), money flow neutral, positively geared or a money flow positive property? What sort of return do you need to get from the property so that you can sustain it and/or your way of life?

Establish your buying guidelines

Buying guidelines can help you focus your search on properties that match your buying tactic... Typical inquiries which you must ask yourself when establishing your buying rules are:

What kind of properties ought to you acquire - houses, units, townhouses or apartments?

How numerous bedrooms really should it have?

What yield should the investment property give?

Should really you acquire new or established properties?

Locate the investment property

The very first step is to select 3 areas of buying interest that relate for your tactic (I.e. money flow or capital development). Use the quite a few online property websites readily available as a suggests of discovering properties in your search regions then apply the buying rules that you simply have established to zero in on the proper property.

Make contact with 3 property managers within your search location and ask them what tenants are trying to find when in search of a rental property.

You can also get in touch with 3 actual estate agents inside your search region, give them an overview of the buying guidelines then ask them to make contact with you with any properties that match your property profile.

Crunch the numbers

Just before you "fall in love" using the property ensure the deal is viable, ensure you analyse the property financials to make sure the property fits your buying method.

Negotiate the cost

Once you have identified the investment property that you simply wish to buy and also the numbers function for you, put in an offer you in writing, this really should be carried out quickly. Add "subject to" clauses including topic to finance, subject to satisfactory building inspection, give oneself loads of time within the contract "subject to" clauses to compete your due diligence investigations.