If you are new to the world of property investing, the first thing you need to do is set clear and measurable goals.
Consider your long-term goals, such as building a property portfolio. In this stage, you’ll want to speak to your financial advisor to make sure your decisions are financially sound.
Be SMART
Document your goals by following the SMART framework:
- Specific – Provide a timeline, state a particular end result.
- Measurable – How high of return do you want? Why?
- Attainable – What would you want to achieve that’s within your control?
- Realistic – Be aware of not just your limitations, but also your opportunities.
- Time-bound – Link a goal to a time period.
Cash flow vs capital growth
Cash flow is often the option first time investors consider when thinking about purchasing an investment property. By receiving rental returns from your investment earlier you have the potential to receive more capital. You will find you’re more likely to pay off your property with this method and have immediate additional income, which can be a great incentive for those planning for retirement as an added income.
Focusing on capital growth may not have immediate income benefits, but the benefit of this type of investment lies in the future profit when sold. Tax benefits are also something to consider when opting for high growth properties, particularly if you are a higher income earner.
The right people
A key factor in setting up your ideal portfolio of investment properties is the people you are working with. You will want to seek the advice and professional services of the following people:
- Property Investment Adviser
- Buyer’s Agent
- Mortgage Broker
- Financial Planner
- Accountants
- Property Manager
To learn the value of your investment property, head over to our website www.rentalresults.com.au or contact Lauren Robinson on 0731237373
