Understanding what you want from your investment is the perfect place to start. Here are our final seven tips to keep you investing the right way.
Define and understand your situation
Do you need more cash flow to pay off your mortgage or are you debt free? Once your goals are defined then you can put your strategy into place, for example do you buy a brand new house and land package or an older property to develop.
Get a good Property Manager
Managing your own property in today’s climate can come with many risks, it makes sense to appoint a Property Manager and all the costs are tax deductible. If your Property Manager is not doing a good job, it is in your best interest to terminate your contract and find someone better.
Don’t spend your investments cash flow
This is where people mistaken the rent and the tax rebate as their own but it belongs to the investment to pay loans, bills and other expenses.
Claim all your Property expenses
Your accountant can only claim the expenses you give them, so research what is claimable and prepare a checklist to ensure nothing is overlooked. You can visit the Australian Tax Office (ATO) website or download our quick checklist here.
Have a backup plan for when things go wrong
Many investors that get into investing think everything will be happy and rosy. Reality is that life has many surprises and you must factor in all the risks and prepare a plan for when and if they happen.
Have a plan in place throughout the life of the investment
Just like a business you must have a plan in place for your property investment as it is your business.
Buy in the right market
The experienced investor will know every part of Australia works on a property clock. When the market is at 6 o’clock, no one else is buying and that is when you should buy. When the market is at 9 o’clock the bulk of the population is jumping into the market, you are paying top dollar and you will need to wait for the next cycle to get any growth.
PS. Download our complete list of tips for a successful property investment journey here and use it as a checklist before you purchase your next property.
*This article is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.
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