Are you looking to get started on your property investment journey and don’t know where to start? In this blog we will concentrate on the basics you need to work on to start on your property investment purchase process.
Wealth Creation is a goal for most of us and investing in property appeals to many. However, before you start, it is crucial to keep in mind some basics and common traps. Like any other business or investment, it is imperative to have a team of experts backing you and experience. Whereas experience only comes with time, expertise can be sort from professionals like Aavas Consultants to guide you through the journey.
Following are the most common areas you should work on preparing for your voyage to become a seasoned investor:
1. Finances: The first and foremost thing to know is your borrowing capacity based on your income and savings towards the deposit. The best way to do this would be to speak to a Finance/Mortgage Broker professional and get an estimate.
The estimate figure will give you an approximate range of the property value you can afford to invest in.
Once you have the other basic research as per below items, it would be smart to get a pre-approval from the bank of your choice even before zeroing in on a property. This gives you and the vendor absolute confidence at every step of the process of purchase.
We all will agree that Finance will play a pivotal role in your ability to purchase a property. Also, structuring your loan keeping in mind the future subdivision and construction process is important to ensure your future borrowing is not hindered by the decisions you take today.
At Aavas, we can help you get in touch with the right finance brokers who will work in your best interests. Contact us for more information.
2. Accountant and Purchase Structure: In this day and age, taxes can make or break your profitability. Therefore, speak to your accountant to get advice on the right structure for purchase of your investment property. There is no one size fits all solution when it comes to property. For some, setting up a trust will be the correct solution whereas for others purchase on personal name would suit best.
Get started on setting up the structure while you prepare to go to the search phase.
We at Aavas, work with some excellent professionals who can provide a tailor-made solution for your needs.
3. Town Planning Consultant Professional aka Aavas Consultants: If you are thinking of purchasing an investment property with a potential of subdivision in the future, you should consult a top notch planning consultant before you start your search. Each Property is different and this is one of the most crucial aspect – getting the right advise from the professionals. This will save you the headache of purchasing the incorrect property and losing heaps of money or not earning any profits at the end of the development project. A good Design Consultant will guide you right from the start of deciding to invest to subdivision and selling of the properties.
My business Aavas Consultants has helped investors and developers alike, so that they can achieve their goals with absolute confidence and knowing all the tips & tricks.
4. Research The Area/Suburb & Speak To Local Real Estate Agents: I personally believe in investing in the suburbs I know and am comfortable in. Whereas it is not possible to apply a blanket opinion to the whole suburb, it is beneficial to know the demographics etc. This will also assist you in the next steps when determining what type of dwellings should be put on the block of land. For example, an area closer to the city with the majority of demographic is couples who are professionals, it would be better to have 3 x 2 bedroom houses as compared to an area with families which will require larger backyard & more number of bedrooms.
Speak to the local real estate agent to get a feel of the area you are researching. At Aavas, we work along side real estate agents to gain the best result for our mutual clients.
5. Invest Immediately: Do not have a significant delay between your research time and the actual purchase as the information you have gathered today may not be completely relevant in one year’s time. If you have done your due diligence for a property base on the current market, the numbers may differ as time lapses. This is also true for property you purchase for subdivision purpose. Council rules and regulations update once in a while and what the proposal given today for redevelopment might not be possible due to significant time lapse. When you purchase with intent of development, both the purchase and development should be treated as 2 stages of a single process/decision.
These and many more things can be considered when you have the right team before entering the Property Development Market. To get started or get more information contact us on 1300 523 993 or email info@aavas.com.au for a discussion.
Team at Aavas Consultants wishes you all the best for your property dreams!
