There is no shortage of commentary within the market on what property investors need to start their investment property portfolio. However, what are the things you don’t need to get started now?
First up, a credit card
Don’t believe the hype, credit cards don’t help your credit rating. In fact they are more than likely going to inhibit your ability to borrow rather than help.
Always focus on getting your mortgage approval before you attain or up your limit on your credit card to maximise your borrowing capacity.
‘So, if you have a $5,000 limit, for example, this will reduce your borrowing capacity when being assessed by the banks. Therefore, where possible, reduce your credit card limits or cancel unused credit cards.’
You don’t need experience
Let’s look at the facts, every investor started somewhere. Just because you haven’t bought a property before doesn’t mean that should stop you from starting now. The only way to get the experience is by doing it.
It can be a daunting step, however, surrounding yourself early with industry experts including in investment property focused mortgage broker, accountant and buyer’s agent can help you build up the knowledge and confidence to buy the correct property the first time around.
Be an expert
You don’t need to know everything. Use your team for what they are good for. Years of experience and expertise. This can fast track your outcomes rather than making a lifelong mistake when buying your first property.
Build a team of industry experts including in investment property focused mortgage broker, accountant and buyer’s agent to ensure that your first purchase is the right one for you.
A huge cash deposit
Whilst buying a property requires a deposit, you don’t necessarily need hundreds of thousands of dollars to get started.
You can get creative with different options, including:
- Guarantor from your parents utilising a small amount of equity from their property to allow you to gain a foot hold in the market earlier
- Joint ventures with a family member or friend
- Get a second job
- Reduce your debt
- All you need is enough money to cover the deposit and buying costs such as stamp duty, legals, inspections and so on.
Do not miss out on your first or next property through procrastination and trying to be everything to every facet of property investment. Build your team and get moving.