9 TIPS FOR BEGINNER INVESTORS

The property investing world can be a vast and confusing place but with the right property investing strategy and a solid team it wont be.

Hi Nicholas the Director of Truth Property hello.

When you’re first starting out, it’s hard to know where or how best invest your time – when there are so many different strategies!, so many different areas to invest in fact even researching an area can feel confusing, its like putting 500k on black in a casino, who to trust.

Using Truth Property services I will help educate you, give you the assurance and confidence to invest in property. Entering this industry may seem overwhelming at first but with these 9 tips for beginners you should keep in mind.

Truth Property will show you just what you need, before getting started and how people make money through investing.

Tip 1:

3 ways you make money combined with a property investing strategy:

1. Growth (Capital Gains) or what I like to call it (money gains).

2. Positively geared property, which means the income its generating is more than the expenses going out.

3. Tax benefits, getting depreciation can help offset the tax in your employment or whatever income you make for your self.

Tip 2

Before you go out to search for a property you and or your partner need to sit down with me and we can figure out and set some financial goals. Understand where you would like to be at, (financially) in say 10 yrs time. So you don’t need to work or only work if you want to. (Example generate 80k passive income annually).

Once you hit your first goal obviously if you want to continue, you set yourself the next goal, in generating higher passive income annually.

Tip 3

Choose your property investment strategy.

A strategy that best suits you, remember this is a business transaction and you should not go by emotion but by numbers and what strategy is going to help you reach your goals.

Tip 4

Be aware when you hire a buyers agent, if you are deciding to purchase a House & Land Package that you don’t pay a fee ranging from 15k plus to the sales person, because they will be receiving commission from the builder for each property they sell. That is why Truth Property does it differently as we do charge a fee of $2,800 but will be refunded this fee once you successfully purchase through Truth Property (House & Land only).

for more about our fee structure click here

So you will be saving 15k + for each time you decide to purchase a Home & Land package. Established homes we will need to charge a fee though.

Tip 5

There is a myth some sales people or property gurus mention that on new homes and land packages you will not be getting capital gains early. For example if you decide to purchase a house & land package today and your land registers in about say 10-12 months time your equity has already build up which means you are making money on new build before the property has even started getting built yet.

Tip 6

Make sure you decide on one strategy only, the reason is if you do multiple different strategies you won’t be getting good at investing.

So stick with 1 strategy.

Tip 7

If you have a mortgage broker go and see him before you decide on a property, if you need one Truth Property can recommend you one. A mortgage broker can give you an idea how much you can actually borrow and what kind of deposit you will need to have realistically, in order to buy a property. You Need to include other expenses

Like stamp duty, conveyor fees, extra mortgage costs insurances etc..

Tip 8

We do the research for a suburb (analysis work),

Don’t forgot Truth Property already has experience and know where high future growth, high rental yield and low vacancy rate locations are, what are the economics of the area is the government poring in funds for future growth, but Nicholas always encourages his clients to do their own due diligence as well so they don’t going into this blindly. We help you choose a property that will help deliver. Nicholas does keep in touch with his investor clients multiple times a year to make sure that all is going well.

Tip 9

Before you decide to purchase a property make sure you have, a pre-approval from your mortgage broker, what that means is you choose a loan get a pre approval, this shortens the timeframe for when you put your deposit down on a property to when you get a full approval, you will need to show pre-approval, to show that you meet the requirements and that you will be able to purchase the property you are interested in.

If you find these 9 tips helpful and would like to use Truth Property services feel free to get in touch.