9 Guidelines on how to start building your property portfolio
AIN (Alternative Investor Network)
We educate our clients to start & grow their wealth portfolio using #property, #mentorships & joint ventures.
When is a good time to invest in property?
The answer is a solid TODAY! How? The reason why I am writing to you today, is we all know that with the global the rise of technology, the world is undergoing rapid change.? BUT bricks and mortar remain a safe investment, as it has been for decades. Property investment is the most reliable way to generate income over the long-term. Buy-to-let is a good way to get a foothold in the property market.
HOW TO START YOUR PROPERTY PORTFOLIO IN 9 STEPS
Review your financial situation
Offload as many debts as you can to avoid them weighing you down during the property investment process. These include credit card debts, student loans or private loans and other account. In addition, it will benefit you in improving your credit record, which in turn will make it easier to have a bond approved.
Research property trends
Take the time to understand current trends in the property market.?Currently, the time for buy-to-let investors, is an opportune situation, as interest rate spikes are forcing owners to sell, thus increasing the need for rental?properties. A positive for the property market is that the top of the current upward cycle of interest rates is close, with interest rates likely to move lower towards the end of 2023 or in 2024. Such trends also play a role in choosing where to invest. Location, location… It may be a cliché, but there’s no escaping the importance of location. A few tips on how to do your research?
Ensure the location matches your target market.
Targeting the millennials? Apartment/s should be close to restaurants. Keep in mind they are usually professionals and less likely to stay for long period. Targeting families? House/s should be close to high-quality schools, hospitals or public parks.
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Inspect the property
Ensure the property is in good condition and you would not need to spend additional money on repairs and maintenance eating into your budget.
Prepare for the responsibilities of being a landlord
As a landlord, keeping the property in good condition will be your responsibility.?Set aside resources for the purpose of potential repairs and maintenance.?Remember about tax implications, levies and other costs
Do your research on rental income that will be taxed.
Remember that levies, repairs, maintenance and insurance premiums might all be tax deductible. Be prepared to put down a deposit.?100% home loans may be a good idea for home buyers, but not for property investors. You want to reduce your monthly repayments and interest as much as possible so that you can profit off the rental rate, and putting down a sizable deposit will help you achieve that, so have a down payment prepared.
Securing the bond on your investment
Get prequalified before beginning your search – you will have an idea of what you can afford.
Slow and steady
Do not be overly ambitious – slow and steady wins the race. Stay focused and ensure that you are making a successful investment before thinking of the next.