4 Costs That People Tend to Overlook When Investing in Property

Hi all. Found an excellent article that I am sure many will relate to. Hope you get something useful out of this...

It is all about the money when it comes to investing in property, and preparing yourself financially is absolutely essential and will save you a lot of financial stress and baggage in the long-term. We have put together four of the major costs that you need to keep in mind when investing in property.

Stamp duty

This might come across as a no-brainer cost to include when looking to invest in a property, but many a time people get carried away by the price tag on the house and forget about the stamp duty that comes with it. Stamp duty differs from state to state when it comes to investment property, thankfully however, there are some government incentives towards stamp duty for investors and first-time home buyers. In addition to all of this, you will have to consider the cost of the deposit that will be required from you of which can range from 5%-20%.

Repairs and maintenance

As a property owner, you will be required to keep the premises in a reasonable state for people to inhabit, which means a general cycle needs to be maintained where you repair and maintain your property. However, if you have employed a property manager this can be taken care of in an allocated budget for them. Whether you are purchasing a renovator’s delight, rental property or whatever type of property run your numbers and do the reasonable checks to avoid purchasing a property that needs major renovations.

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Thanks,

PJ