Getting Started As A Property Investor

So, you have some equity in your home or cash stashed away in the bank not working for you. You have seen friends, family and colleagues buy property. You have started to consider the idea of becoming a property investor but, you have no idea on how to get started.

Today we will discuss a series of steps that you need to undertake before you plunge into successful property investing. Each step is as important as the next and this list is not exhaustive.

Let’s get started!

Step 1:     Assess your financial capacity
Step 2:    Set goals and determine objectives
Step 3:    Understand your risk profile


Step 1:    Financial Capacity

You can’t start your search for a property if you do not know how much you can afford, or what the lenders will lend to you. There is no point in searching for property in a certain price point if your true borrowing capacity is significantly less. This only wastes your time and energy and puts a dampener on your project.This is where an experienced mortgage broker can be of benefit. As a mortgage brokers, with over 20 years experience in property investing, we can assist you with determining your current and future borrowing capacity.First and foremost we can provide advice on:

  • How much you can borrow;
  • How to structure your loans to maximise your tax advantages;
  • Who the best and cheapest lenders are.
  • The process to build a successful property portfolio.Don’t underestimate the importance of finance to your overall property investment strategy. Without a sound financial plan in place, you could limit how much you could borrow and ultimately miss out on opportunities to create wealth.

Step 2:    Set Goals & Determine Objectives

It is virtually impossible to create a successful property portfolio if you don’t understand what your short and long terms goals are. You need to have an objective in mind. In any pursuit, whether it is work, sport or being a property investor, the key to being successful is developing a clear strategy and setting goals.

The first point to achieving your goals and meeting your objectives is to:

  • Plan ahead
  • Have an exit strategy in place
  • Build a team around you
  • Learn how to research
  • Never give up

By ensuring you set and determine your goals, you will be on your way to success.


Step 3:    Understand your risk profile

What, where and when you invest in property will be determined by your risk profile. Your risk profile will depend on a number of factors including

  • Age – a younger person who has time on their hands may be prepared to take more risks than somebody near retirement.
  • Family Situation – those people with fewer commitments (such as children) may be prepared to take more risks than other investors.
  • Experience – those who have skills, knowledge and experience with investing may be prepared to take more risks then a person who has never invested before.
  • Investment Goals –whether you are investing for capital growth or cash flow.
  • Timing – people who invest in a short term timeframe may be taking on more risk, especially if they don’t have the experience. Other investors, where timing is not critical, may take a more thorough approach.

There is a risk in any form of investing, whether it is property, shares or even buying a new car. The objective of your risk profile is to identify what form of risk taker you are. Ultimately, whether you are a young person who is prepared to take a few more risks or a married person with kids, your end goal is to ensure you minimise your overall risk exposure.

To take your first steps towards property investing please call our office on 08 8431 7444.

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