3 Top Tips For Savvy Property Investors

3 Top Tips For Savvy Property Investors

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Think Long Term

Think about your long term financial goals and what you want to get out of your investment property. Are you hoping to let it grow in value over the years, eventually using it to enhance your investment portfolio and equity for other ventures? Are you looking at your property investment in terms of an income-generator that can be constantly rented out? Are you thinking of playing the market, buying for a steal and selling for a substantially larger amount? The plans you have for your investment property will dictate the kind of house you buy and the kind of features you look for when youre deciding.

Choose the right loan

Most investment property buys will require at least partial financing. The loan you choose can have a great deal of bearing on the return you see from your investment. Just because two loans may seem to have almost identical interest rates, this doesnt mean you can assume youre getting roughly the same deal. Many banks will market a loan for its seemingly low interest rates, but then surprise you with an exorbitant establishment and application fee when the time comes to apply for the loan, By this time youve usually had pre-approval which means youve probably put an offer in on the house, and it can often be too late to pull out. If youre considering a short-term sale on the property a big application fee can be particularly crippling, because you outlay money you otherwise wouldve saved just to get a low interest-rate which doesnt end up making too much difference anyway.

Look out for private sales

One thing to look for if youre trying to find a bargain is a house thats listed as a private sale. A real-estate agent will always take a commission, and when people are selling a house they will have to factor in their agents commission in the price. This could mean theyd be less willing to come down too much because theyve still got to pay a percentage of the sale to someone else. A private sale means there could be more wiggle-room in the asking price, and you could save yourself up to $15,000.

The most sound piece of property investment advice you can get is to set your non-negotiables in terms of price, quality and requirementsif you refuse to budge for anything less youll eventually come across the investment thats perfect for you.

About the Author:
Direct Property Network (DPN) provides clients with an end-to-end property investment solution from selecting the right property, all the way through to settlement and beyond. We help clients establish affordable and profitable investments by researching and sourcing wholesale property.



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