Budgeting Tips for First-time Property Investors

1. Budgeting Tips for First-time Property Investors

2. First-time Property Investor • So you’re ready to delve into the wonderful but sometimes complex world of property investment. But before you dive right in, there’s several things you should consider. • Firstly, you have to develop a budget that is a) sustainable and b) realistic. • Balancing your income and expenses ensures you take a positive, proactive approach to building and managing your property portfolio, and helps you remember to treat it as a business.

3. Here are the Budgeting Tips Can Help you Attain Your First Property Investment

4. Set Goals • Goals help you consolidate your knowledge and experience, while providing the focus you need to maximize your property investment journey to achieve long-term, sustainable wealth. • Long-term goals - Establishing long-term goals is critical because it puts your first property investment into perspective with your other life goals and priorities, and influences. • Short-term goals - Short-term goals means those achievable within a year or less. You need to be flexible and ready to modify your goals and/or set new ones.

5. Know Your Borrowing Capacity • Again, it might sound simple, but knowing your exact salary and income underpins the framework for your budget, which will determine your borrowing capacity. • You need to know both your: Gross salary – what you earn before tax, Net salary – what you earn after tax. • Your borrowing capacity takes into account what you can afford to buy, based on: Estimated repayments, Interest rate, Repayment type, Loan term, Loan type, Your debts/expenses, Your income/asset.

6. Research The Property • Research the property and conduct due diligence. Engage a professional to conduct a thorough investigation of the property to ascertain any issues or potential costs you may not have considered, and therefore incorporated into your budget. • It is worth the investment – it could be the difference between a small fee now and potentially huge costs in the future. • If the due diligence reveals there are repairs needed, incorporate a short-term maintenance plan into your budget.

7. Research The Market • You should also research the market to analyze the property’s value and performance against comparable properties. • This ensures you are up to date with price fluctuations and property market cycles. • And this means you will gain valuable knowledge to help you invest in areas with strong capital growth.

8. Understand All The Buying Costs • Buying an investment property is not just about the purchase price. • Be aware of both upfront and ongoing costs when considering your property investment purchase.

9. Modify Your Budget • Once you’ve set your initial budget, review, review, review it. Things change. Things pop up. Like unforeseen costs. Or, an unexpected salary increase. Monitor it and adjust it accordingly. • Remember, it’s a journey. Property investing involves a long-term strategy. • As you build equity, you can start the next phase of your journey and add to your portfolio.

10. Check These Out! • Property Wizards is a multi-award-winning buyer’s agency. From finding the right investment property Perth has to offer, to researching and negotiating the best price, we work for Australian property investors and homebuyers, as well as overseas and expat buyers. • We provide you with the advice and assistance you need, ensuring you make the right decision when you choose to invest in property. • For more info on property investment strategist perth check out: https://www.propertywizards.com.au