Buying your initial investment property could be a daunting prospect, following these 8 steps may have you properly on the road to results.

Construct a team of experts to help you

Examples of your style of professional that you will will need to possess in your group are solicitors, accountants, finance brokers, property coaches/mentors, property managers, valuers, quantity surveyors and insurance brokers.

Establish your borrowing position

Get in touch with your mortgage broker and ask them for an assessment of the borrowing position. Understanding your borrowing position and what you could do to improve it aids you to program and operate out the type, quantity and profile on the properties which you can afford to get.

Establish the right entity to get your property in

The question you might subsequent face is what entity it is best to acquire the investment property in. Should it be in your personal name, your spouse's, child's or partner's name? Or need to it be inside a trust (hybrid, discretionary or unit trust), a business or perhaps a mixture with the above?

Also, how numerous properties ought to you purchase in the one entity and why? How need to you structure the buy to provide maximum asset protection though at the similar time providing you with maximum leverage, minimum tax and the best return on your investment?

Establish the proper buying strategy

What type of property ought to you obtain? Ought to it be a capital growth (negatively geared), money flow neutral, positively geared or perhaps a cash flow constructive property? What sort of return do you may need to get in the property as a way to sustain it and/or your way of life?

Establish your buying guidelines

Buying guidelines can help you concentrate your search on properties that fit your buying method... Common concerns which you should ask yourself when establishing your buying guidelines are:

What type of properties should you buy - homes, units, townhouses or apartments?

How lots of bedrooms ought to it have?

What yield should the investment property deliver?

Must you obtain new or established properties?

Obtain the investment property

The very first step will be to choose 3 regions of buying interest that relate for your strategy (I.e. money flow or capital development). Use the many online property websites readily available as a suggests of getting properties within your search places then apply the buying guidelines which you have established to zero in around the correct property.

Contact 3 property managers in your search area and ask them what tenants are searching for when searching for a rental property.

You may also contact 3 actual estate agents inside your search location, give them an overview of the buying guidelines then ask them to speak to you with any properties that match your property profile.

Crunch the numbers

Before you "fall in love" with all the property make sure the deal is viable, ensure you analyse the property financials to create sure the property fits your buying method.

Negotiate the price

Whenever you have located the investment property that you just wish to obtain and also the numbers work for you, put in an provide in writing, this must be accomplished swiftly. Add "subject to" clauses such as topic to finance, topic to satisfactory building inspection, give oneself loads of time inside the contract "subject to" clauses to compete your due diligence investigations.