The hectic conditions of the current property market have many first-time investors feeling pressured to buy a property out of fear that they might be priced out of the market. However, purchasing a home is a big decision and one that should not be rushed into. Getting into the property market under-prepared or too early can end up being costly and reduce your returns on the investment.

Posted in: Insights, News

18/11/2021

Things To Remember As A First Time Investor

The hectic conditions of the current property market have many first-time investors feeling pressured to buy a property out of fear that they might be priced out of the market. However, purchasing a home is a big decision and one that should not be rushed into. Getting into the property market under-prepared or too early can end up being costly and reduce your returns on the investment.

We often hear of experiences or stories from when people bought their first investment property. These stories are a great way to educate yourself, taking into account what mistakes they made or things they could have done differently and even the things they did well.

When you are buying an investment property, there are three major considerations:

Your budget - which is usually determined by what your income and expenses are and what the bank is willing to loan you. Reducing debt and credit card limits, or asking for a pay rise, can increase your borrowing capacity.

The property itself - the age of the property, size of the block, how many bedrooms and bathrooms, etc.

The location - proximity to schools, universities, hospitals, services, shopping and general amenity and feel of the suburb. You can always renovate the property in the future, but you can’t change the location, so focus on this primarily.

Get reday with these 5 tips!

1/ Get your finance pre-approved with the help of a Bernie Lewis Home Loans mortgage broker BEFORE you start searching for property, so you can make offers with confidence.

2/ And always make sure you have a buffer for emergencies, such as the hot water system blowing up just after you settle! Having a rough idea of your costs and putting some money aside each time you get paid is a great way to start. Remember, costs like utilities, property management fees and maintenance (just to name a few), don’t stop when your investment property is empty and there’s no rent coming in, so building a ‘slush fund’ is key.

3/ An investment property should be purchased with your head, not your heart. These days, property is staged so beautifully that it can make you forget the numbers and fall in love with the property. Do your research on up and coming suburbs and look outside of your own neighbourhood.

4/ Always get a second opinion and ask your broker for assistance.  A real estate agent works for the sellers, not the buyers. Make sure that you always get a valued second opinion and find good professionals to assist you through the process, eg: an experienced mortgage broker, conveyancer and accountant. These people can help you with the numbers and also source building and pest inspectors for the property. Remember, this could save you a small fortune down the track.

5/ And lastly, don’t wait for the perfect property. It doesn’t exist. Follow the advice given to you by the professionals and be prepared. 

Call Bernie Lewis Home Loans on 8300 8300 to speak to one of our mortgage brokers today or email info@bernielewis.com.au . Bernie Lewis Home Loans also offers a conveyancing service. Call or email us today to learn more.