A checklist for off-the-plan success 

A checklist for off-the-plan success 

Every area and property is different, there are certain things to look out for across the board. Here are some key things to check when purchasing property:  Uniqueness  Look at the nearby area of any proposed investment property and do some research on how unique the property is for the area. This will inform whether there is a desire within the local community for a rental property such as this, and therefore, whether it will be easy to find tenants.   Infrastructure  Always look at infrastructure or impending infrastructure of the development if you’re buying off-the-plan.  Some developments have their own infrastructure, so the proximity of a resident to places like supermarkets, shopping malls, cinemas and so on is not an issue – residents can park their car and get groceries on the way to their apartment.  Then there’s external infrastructure to consider, such as proximity to the CBD, hospitals, schools and transport.   Would I live here?  Consider the demographic of the people who would be looking to live in the development. Each development is different. Different apartments suit different lifestyles and budgets.    What will the area be like in five to 10 years?  Property investment normally requires a long-term strategy, so look at the last five to 10 years of population growth and property price fluctuations. No one has a crystal ball for property investment, but you can look at other factors in the area and make an educated guess.  If the local community has shown support for the development because it will bring much needed amenity to the area, and a huge amount of jobs you are on a winner. ...
Set a Framework with your Property Manager 

Set a Framework with your Property Manager 

As much as property managers want to give the best service to their clients, investors must also be responsible enough to reflect on the kind of relationship they have established with their financial team—how do they become a better client to attract the best professionals?  Being good property managers takes time and effort so having a client who is consistently proactive in pursuit of his own success makes work considerably easier and even fun.  First and foremost, investors must keep in mind that property managers are professionals—they know their way around the market because they quite literally spend every working hour studying it. It is, therefore, important for them to keep a clear set of tasks to accomplish every day in order to serve all different clients with different needs without compromising the quality of their work.  They know the market, they usually have a clear schedule. They know exactly what they need to do. They’ve got to set the task list when it comes to leasing a property, to managing a property, and how they address each of the items they’ve got to do.  The best thing for a property investor to do, is to have the same mindset. Being able to understand exactly what the investor wants saves both the property manager and their client from misunderstandings as well as wasted time and effort.  They might have an investment strategy, they might know when they plan on doing these renovations, what their targets are, exactly why they bought the property, what sort of communication they need, and what sort of schedule they want to be on.  While...
Tips for starting your property portfolio 

Tips for starting your property portfolio 

Starting your own property portfolio may seem daunting, although with a few sage tips you can avoid unnecessary pitfalls and ensure success!  Be clear on your goals  Be clear on what you are trying to achieve from property investing. Be specific about the financial outcomes you looking to achieve from property investing, and in what time frame you want to achieve this in. Property is just a vehicle to get you to the financial position to give you the lifestyle you desire – ask yourself, “is it passive income, or a net equity position, or is it a combination, and when do you want to achieve this by?”  Be educated  We’re playing with large sums of money, and most often buying a property will be the biggest financial decision you will make in your lifetime. It still baffles me that some people spend more time researching a weekend getaway than they do buying a property. There are some great online platforms including Smart Property Investment, Australian-specific property investing books, podcasts, online forums, networking events, and free seminars.  It’s in the strategy  It’s important to understand what financial outcomes you are trying to achieve from investing in property because this will dictate the strategy you adopt, and how passive or active you need to be. It’s also important to assess your risk appetite dependent upon your situation. Some well-known strategies are buy and hold, renovation, flipping, development, and joint-venture to name a few. It might be a combination of these, however always be clear on what outcomes you are trying to achieve.  Build your team  Once you’ve created what you believe is...
How to buy property the right way

How to buy property the right way

Buying property has definitely got its upsides and its downsides. The skill lies in navigating these in your favour in order to make your property investing most profitable.  The most common words of wisdom heard from those that do well with their investments are; buy with your head, not your heart; and the profit is in the purchase.  This is where most investors and especially those new to property investing, go wrong. Most tend to treat buying an investment property just like buying their home, which translates to an emotional buy. This is where most go about it the wrong way too.  Commonly, we tend to look at agents’ windows, websites and the big property portals for suitable properties to find an investment. Yet, there are other ways to go about it if you want to buy with the added value of either having fast capital gain, scope for improvement, sub-division or even development potential.  Ultimately, when we want to buy any other product at the best price, we look at ways to buy from those that need to sell, how we can get it at a reduced price; buy it at wholesale or direct from the producer. Come to property, most investors look only at the retail end, which in most cases means that they are paying a premium price to begin with.  ‘The biggest profit is made at the point of purchase’, I have been told too many times from successful investors to ignore.  Just like a personal trainer at the gym, or a life coach for your career development, a property investment mentor are available to help you to understand...
Why high-end properties are not the key to real estate wealth

Why high-end properties are not the key to real estate wealth

It may surprise many first time investors that purchasing well-located lower-priced properties can deliver higher rates of capital growth than properties located in much more expensive suburbs.  In areas such as Perth and Brisbane, for example, you can still purchase well located properties in suburbs with a median house price of less than $500,000 that can achieve greater annual capital growth rates than properties in suburbs with a median house price of above $1 million.  First time investors should take the lead from the large number of people whose wealth has been based on buying affordable properties in well located areas.  There are literally thousands of wealthy people throughout Australia who at one stage in life bought a very affordable home as their first home and then used this as a stepping stone to create personal wealth over the long term. How to buy affordable property; Check if there are any upgrades in affordable areas to local infrastructure such as new schools, shopping centres or transport. New infrastructure can increase the value of properties by making homes in these areas more appealing to buyers.  The best areas to buy affordable properties are locations with high population growth rates. You should target affordable properties in these locations with as much land content as possible.   Make contact with a number of agents to check what type of properties are most in demand in the local area. This will give you an indication of what type of property will appeal to future buyers if you decide to sell.  Check with the local council to find out which suburbs have any future potential...
Building a property savings plan

Building a property savings plan

As property prices rise rapidly in some capital cities, the savings for a deposit on a property often represents a significant chunk of a person’s yearly income. Yet this amount should not dissuade would-be investors! Whether you already own property or are planning your first purchase, buying an investment is an achievable goal. If you’re a first-time buyer… Set a target Putting aside money that could instead go towards indulgences is not an easy task. It’s even harder when you have no clear plan or purpose. People really struggle with savings unless they have a specific goal in mind. Saving needs to be a mind-set. You really need to want to succeed. This alone will help build up your savings. Sitting down with a mortgage broker or financial adviser can increase people’s motivation by giving them a clear understanding of their goals. While five or 10 per cent deposits allow people to get into the property market faster, lender’s mortgage insurance (LMI) can dramatically add to the monthly cost of a mortgage. If you know that saving an extra $10,000 is going to save you $5,000 in lender’s mortgage insurance, that’s pretty good motivation. First-time buyers should be aware that the costs of buying go beyond just the deposit. Legal fees, inspections, stamp duty and repairs all need to be taken into account when saving. For investors, for untenanted properties, an initial vacancy period might also add to the cost. You’re also going to have to pay an agent to find a tenant. Investors who take these issues into account from the start are less likely to be hit...