How to get into property investment
Whether you’re looking to diversify your investment portfolio or are just getting started in investing, property investment is a widely appealing option.
Although it is no get-rich-quick scheme, property investment is a great option if you’re in it for the long term. Here’s what to consider when first starting to invest in property.
Firstly, look at your finances! Consider setting up a budget and define your financial goals. It is important to ensure that both of these are realistic.
Explore whether you qualify for a loan; this can be through a bank or lending institution. For pre-approval, which is a formal indication from a lender that they will lend you a certain amount of money, you will generally need to provide proof of income and expenditure, bank statements and a list of your current assets and liabilities.
We recommend not applying for multiple pre-approvals, because when lenders check your credit record, they will discover multiple inquiries, which may result in your application being refused.
Secondly, identify who your ideal tenant or buyer will be. This will help you decide what kind of property to buy and where. Consider what suburbs are performing well, what the local demographic is like, what school catchments are in high demand and what the suburb outlook is like.
To take a look at our local area, Brisbane’s property market is forecasted to have strong growth in 2022, following the exponential growth of 28.7% in 2021.
Brisbane is expected to continue to benefit from growth drivers underpinned by the announcement of the 2032 Olympic Games, which is expected to continue bringing infrastructure, economic and population growth over the next decade.
The inner western Brisbane suburbs have seen strong demand, resulting in price growth for both owners and landlords. You can further explore the market insights for our area here.
If you are wanting to rent out your property, it is important to be proactive to ensure high yielding returns and constant cash flow.
Kym Cheney, Head of Property Management at O’Neill Estate Agents, has 14 years of experience in the industry, therefore understands what it takes to make tenants stay long-term.
“Think of your property investment as a business. In order for a business to have profitability, you need to be proactive with your approach and dealings,” says Kym.
“Make the basic, essential items available in your property from the get-go to attract higher rent and in turn, a higher calibre tenant. This can include items like a dishwasher, ceiling fans, and air conditioner in living areas and master bedrooms.”
Finally, when getting into property investment, it is important to understand your attitude to risk. Each investor will have their own tolerance to risk, and this will affect where they are willing to buy a property.
Some areas, such as mining towns, carry a higher risk, compared to capital cities. However, it is important to note, that wherever you invest, it is important to have experts on your side. Often when people are looking to invest, they want to do it in an area that is known to them, as this is in their comfort zone. However, if you look outside your area, you may find another area that is performing better and has a more positive growth outlook.
Buyer’s Advocates are a great tool for property investors, as they have extensive industry knowledge, insights into the area, and are able to use their connections to ensure that you get an excellent property to suit what you are after.
With historically low-interest rates and low vacancy rates, this is a great time to consider starting your property portfolio.
Chat to one of our expert team today and find out how O’Neill Estate Agents can help you.