fbpx

You’re a first-time property investor… Where do you start?

You’ve done your research and decided property investment is for you. You know the pros, the cons and accept the risks. 

You are excited about the opportunities, the thrill of buying, and making a tidy profit on the way through… But where do you start? 

You start here…

Set your goals

What do you want to achieve through your property investments? How will this benefit you in the future? 

Ask these questions and understand what you would like to achieve in 1 year, 3 years, 5 years or even 10 years. Then break this down, and understand what this means on a weekly and monthly basis in your life. 

This will put you in a strong position. You need to have solid goals and understand what you need to do to achieve them. However, whilst your goal should be in ‘stone’, your plan needs to in ‘sand’ (something you can shift and change on when needed).

Know your finances and how much you can invest

This might seem like the most basic starting point, but it is often overlooked. It can be as simple as knowing what your expenses are against your current income and assets, and what’s left to play with. 

You need to know what you can afford and what you can’t. You need to know how much you can borrow and safely repay. A good budget is critical. It can stop you spending more than you can afford, and helps you track your current position and achieve your goals. Most banks are very conservative with their borrowing capacities, to some that can bring frustration and to others it shows a sense of responsible risk-taking. Bonus tip – Don’t forget about INCOME, it can cause the fastest shift to savings and investing results.

Build your plan

Combining the outcomes of the two steps above, build your short-, medium- and long-term plans. 

Make these specific, make them measurable, and stick to them. When building your plan don’t think that it always has to be a cashflow vs capital growth decision. This myth has been busted time and time again…you can get BOTH!

Review your plan 

A key step that is regularly missed is reviewing you plan. Set times at regular intervals to do this. Look at how far you have come, what you have achieved and the lessons you have learned. Know your environment and market and check if you need to make any tweaks to your plan in response to these. 

Don’t give up

There will be ups and downs along your property journey. Keep your goals in mind, remember why you are doing this, what you want to achieve and don’t give up.

Some first-time investors prefer to start this journey on their own, whilst others understand that making mistakes can be costly, time isn’t always available and finding where to start with research is no easy task. If that sounds like you, reach out and book a free consultation to speak to one of our advisors.