Budgeting Tips for First-time Property Investors (1)

1
Budgeting Tips for First-time Property Investors
2
First-time Property Investor

• So youre ready to delve into the wonderful but
  sometimes complex world of property investment.
  But before you dive right in, theres several
  things you should consider.
• Firstly, you have to develop a budget that is
  a) sustainable and b) realistic.
• Balancing your income and expenses ensures you
  take a positive, proactive approach to building
  and managing your property portfolio, and helps
  you remember to treat it as a business.

3

• Here are the Budgeting Tips Can Help you Attain
  Your First
• Property Investment

4
Set Goals

• Goals help you consolidate your knowledge and
  experience, while providing the focus you need to
  maximize your property investment journey to
  achieve long-term, sustainable wealth.
• Long-term goals - Establishing long-term goals is
  critical because it puts your first property
  investment into perspective with your other life
  goals and priorities, and influences.
• Short-term goals - Short-term goals means those
  achievable within a year or less. You need to be
  flexible and ready to modify your goals and/or
  set new ones.

5
Know Your Borrowing Capacity

• Again, it might sound simple, but knowing your
  exact salary and income underpins the framework
  for your budget, which will determine your
  borrowing capacity.
• You need to know both your Gross salary what
  you earn before tax, Net salary what you earn
  after tax.
• Your borrowing capacity takes into account what
  you can afford to buy, based on Estimated
  repayments, Interest rate, Repayment type, Loan
  term, Loan type, Your debts/expenses, Your
  income/asset.

6
Research The Property

• Research the property and conduct due
  diligence. Engage a professional to conduct a
  thorough investigation of the property to
  ascertain any issues or potential costs you may
  not have considered, and therefore incorporated
  into your budget.
• It is worth the investment it could be the
  difference between a small fee now and
  potentially huge costs in the future.
• If the due diligence reveals there are repairs
  needed, incorporate a short-term maintenance plan
  into your budget.

7
Research The Market

• You should also research the market to analyze
  the propertys value and performance against
  comparable properties.
• This ensures you are up to date with price
  fluctuations and property market cycles.
• And this means you will gain valuable knowledge
  to help you invest in areas with strong capital
  growth.

8
Understand All The Buying Costs

• Buying an investment property is not just about
  the purchase price.
• Be aware of both upfront and ongoing costs when
  considering your property investment purchase.

9
Modify Your Budget

• Once youve set your initial budget, review,
  review, review it. Things change. Things pop up.
  Like unforeseen costs. Or, an unexpected salary
  increase. Monitor it and adjust it accordingly.
• Remember, its a journey. Property investing
  involves a long-term strategy.
• As you build equity, you can start the next phase
  of your journey and add to your portfolio.

10
Check These Out!

• Property Wizards is a multi-award-winning buyers
  agency. From finding the right investment
  property Perth has to offer, to researching and
  negotiating the best price, we work for
  Australian property investors and homebuyers, as
  well as overseas and expat buyers.
• We provide you with the advice and assistance you
  need, ensuring you make the right decision when
  you choose to invest in property.
• For more info on buyers agent investment property
• check out https//www.propertywizards.com
  .au