March 16, 2016
Kicking property investment goals
Having a clear vision of one’s investment goals can mean the difference between a lack-lustre property portfolio and a brilliant one. In fact, carefully defined goals from the outset are essential given that short term returns, long term capital growth, and overall rental yields are largely determined by the type of property and its location.
Investment goals should not only inform buying decisions, they should also dictate the ongoing strategies that keep a property investment on track. Here are a few important basics:
• Think about your investment goal first. Is it to retire earlier or richer, to supplement current income or completely replace it? Are you investing for capital growth or yield?
• Calculate your borrowing capacity, with expert advice ideally, and choose a price point you can afford.
• Get your financial affairs in order and arranged in a way that best accommodates, protects and grows your investment.
• Remember that securing the right loan is just as important as securing the right property.
• Start searching for property only once you’re clear on the above. Ensure your buying decision isn’t based on emotional factors, such as a property’s proximity to your home or the fact that you like it.
• Use reliable resources and a trusted agent and do your research properly. Research suburbs with the highest growth over time, anticipated growth, lifestyle appeal, good public transport and quality educational and shopping facilities.
Whether buying your first investment property or expanding an existing portfolio, we’re here to help. We’re also committed to the success of your investment. While our property and asset management staff can offer personalised support and assistance, they can also point you in the direction of other trusted professionals. All you need do is ask!