Relocation Relocation Austraila hosts, Veronica and Bryce, have these tips.
The Bricks and Mortar Bank Account
The main aim of property investing is to make some money off the investment, which means you want a healthy rental return and the value of the property to increase.
Here’s are some strategies we shared with Claudia and George for creating your own bricks and mortar bank account
1 Choose an investment property in a solid growth area, with appeal for prospective tenants.
2 Ideally look for properties close to entertainment, cafes, universities, hospitals and transport, which appeals to a wider range of consistent renters.
3 How you structure your Finance is crucial to producing great profits from property investing
4 Good debt is money borrowed to create more money. Bad debt, on the other hand, is money spent for depreciating assets. Using debt to buy appreciating and income producing assets is a great way to build your personal wealth. By contrast, consumer debt is a great way to reduce your net worth.
5 Banks are keen to lend money (they are basically money shops) but it pays to use an investment-savvy mortgage broker to find the loan that best suits your needs and structure your portfolio to maximize your borrowing capacity
6 Properties that will be in continuous demand from owner-occupiers are a good bet and this means livable streets, lifestyle locations, security and minimal maintenance.
7 Ensure the property that you are looking at has an efficient design
8 Look for features that tenants love like large bedrooms, air conditioners and modern wet rooms
The type of property that will be in demand is changing as generations age, fewer families are staying together and household sizes are falling
Our major cities will be barely recognizable in 20 years time if population growth predictions are met So investing in a bricks and mortar bank account is …………
Having champagne tastes on a beer budget. Manage your expectations and your budget.
Claudia and George were attempting to get in to the bottom end of a very expensive market on Sydney’s Northern Beaches.
Reality hit when they realised what they could actually purchase with their budget. Here’s how to manage your own expectations.
1 Do your homework – research and ask about prices in the area you’re interested in.
2 Give yourself a reality check and remove the blinkers. There’s no point in looking at waterfront mansions if you only have money for water glimpses.
3 Is the view or the house more important? Is the house or the location more important? This will dictate what you can afford.
4 Are you willing to renovate? You may be able to pick up something more affordable in the area you love if you’re willing to do some hard work on the property.
5 Try to see the move as a stepping stone towards your champagne dreams.
6 Are you willing to downsize to be in your dream location?
7 Freestanding homes on a dollar per square meter basis are typically more expensive to buy
Essentially, managing your budget with your expectations will make the process of buying a home more realistic and enjoyable.
Have an honest and hard look at your finances, as this will increase your prospects of finding the right home sooner rather than later. Because looking for a home can be a long and drawn out process if you’re head is in the clouds.