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When it comes to property investment, what are the things people should do and what are the things they shouldn’t do? These are really important considerations people need to know before investing in any kind of property and taking on an investment loan

With this in mind, we have created a brief guide to the do’s and don’ts of investing in property to help you avoid the pitfalls and prepare yourself accordingly.

The Do’s Of Property Investment 

1. Research The Markets

When it comes to property investment, it’s all about location, location, location. Do make sure that you research the markets in which you are thinking about buying a property. Look for things such as the state of the local economy, how much properties have increased or decreased in value over the last decade and things of that nature. 

2. Have Specific Goals In Mind 

Do have specific goals in mind. It’s a good idea to know exactly why you are investing because lenders will want to know to more about why the applicant wants to invest. Having clear goals in mind can go a long way when it comes to investing in properties. 

Property Investment Guide Do's Don'ts

3. Set A Budget

Do set a budget and stick to it. The last thing anyone wants is to invest in a property they actually can’t afford in the long run. Even if you use a mortgage broker, the majority of lenders still want at least 20% as a deposit on a property. Not only that but there may be other fees that need to be paid, such as stamp duty, legal fees, maintenance and insurance to name a few. 

It’s a good idea to write down how much you can realistically afford for a property. You need to budget for expected fees and unexpected fees. Setting a budget can save a lot of headaches further down the road. 

4. Consider Insurance

Do consider purchasing insurance. When it comes to properties, anything can happen which is why it’s a good idea to consider buying insurance. Insurance can cover an array of things such as damage and theft to name a few. In the long run, insurance can save investors a lot of money.

The Don’ts Of Property Investment

1. Don’t Buy The Cheapest Property

Don’t buy a property solely for the fact it is the cheapest property in the area. The main reason for this is that the property might be cheap for a reason. For example, there may be some hidden structural issues that might end up costing a bomb to rectify. If that is the case, you might end up overextending yourself which can cause an enormous financial strain on you. Also, don’t buy a cheap home or any home just because it is easy to qualify for a low-interest loan.

Property Investment Guide Do's Don'ts

2. Don’t Assume The Bigger, The Better

Don’t assume the bigger the property, the better. This isn’t always true because if someone buys a big property in the middle of nowhere or even in a major city, the chances are they will struggle to find someone to rent it. Unless it’s investing in commercial properties, beginners should think twice about buying big properties. 

3. Don’t Pay Attention To Fads

Don’t buy a property just because it’s the current fad. For example, buying apartments off the plan was all the rage and those who invested early on did make money. However, as time went by, people who jumped onto the fad when the market was saturated with apartments made little to no money and ended up regretting the decision. If someone is new or not that experienced with investing in properties, then they should steer clear of fads. 

Those who want to invest in properties need all the help they can get. By knowing what they should and shouldn’t do can make all the difference in the world. Keep the above guidelines in mind when thinking about investing in property or when the time comes to invest.

At New World Funding, we understand that banks aren’t always the best places to turn for a business or property loan. That is why you can turn to us. We’ll collaborate with you to ensure our loans are tailored to suit your specific needs. We are committed to providing a unique experience for each and every client.

Please call us today on 1300 974 985 or leave us a message and we will get back to you within 24 hours.

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