If you’re like thousands of other Australians, you’ve thought plenty about buying an investment property in Sydney.
But like many of those, you may still be procrastinating.
If you’re not sure where to start, or you feel uncertain about your capability, there are some basic steps you can take now so you’re ready for your first purchase.
These steps are painless, free of charge, and essential to laying the groundwork for your property journey.
1. Draw out a timeline of goals
This is the time to sit down and think about what you want to achieve.
Everyone’s goals are different – some want to supplement their income now, some want to prepare for retirement in several decades time. To make the job simpler, start at the end and work backwards. For example, write down a 20, 10, 5 and 2 year plan.
2. Get your finances in order
Gather your bank statements, work out your budget, and calculate all your assets. Essentially, you need to know:
- how much money you have coming in
- how much debt you have
- your average weekly expenses
You need to know all of this so you can take the information to a finance broker.
Don’t look at your numbers and assume you can or can’t buy – speak to a professional finance expert, as you never know what options are available to you.
3. Visit a Finance broker to check your borrowing power
A finance broker can then calculate your borrowing power, and suggest ways to increase it.
It’s more difficult getting finance today, so it will be helpful having somebody assisting you through the maze of multiple lenders and a myriad of loan products.
4. Implement a budget
Now that you understand your financial standing, you’ll probably be able to see how important it is to control your spending.
You need to know you can afford to handle the incoming and outgoing expenses of a property, while also managing your personal finances. Learning to stick to a budget is a foundational step to a successful investment plan.
5. Research, research, research
There are some many suburbs in Sydney but only a few are investment grade locations.
Around 80% of the eventual performance of your property will be due to its location (something you can’t change) and about 20% will be due to the property in that location.
It takes time to drill down into each potential market and calculate its feasibility. You’ll likely find yourself digging, discarding and reassessing many times before you spot a suburb with potential that’s a good fit for your strategy.
6. Find a team of experts
Property investment is a team sport and at this stage of the cycle it’s critical to have a good team around you.
Especially if you’re looking at getting into the hot Sydney property market, it’s important to have a professional on your side, representing you and not the vendor.
Why not have a chat with the the independent team at Metropole Properties Sydney Whether you’re a beginner or have an established property portfolio, we will customise a solution to meet your specific needs.
Over the years our team members have been voted Australia’s leading Property Strategist as well as Australia’s Leading Buyers Agents, Finance Broker & Property Managers.
SO WHAT WILL BE YOUR NEXT STEP?
Are you going to take advantage of the Sydney property markets or are you going to sit on the sidleines?
If so and you’re looking for independent advice, no one can help you quite like the independent property investment strategists at Metropole.
Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.
Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.
Please click here to organise a time for a chat. Or call us on 1300 20 30 30.
When you attend our offices you will receive a free copy of my latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.