1. Set your goals and strategy from the outset
What are you looking to achieve? Are you looking for capital growth or passive income? By what date do you want to achieve that? For example – what do you want 31 December 2012 to look like financially?
2: Have a solid base to start
Where are your funds now? Are they accessible or are they tied up? If you are borrowing money to invest has the finance accessible?
3: Invest with the head not the heart!
It is easy to fall in love with a property for all the wrong reasons. Ask yourself does it fit in with your strategy as an investment?
4: What is your exit route?
This should be one of your first considerations. Do I want to hold the property forever or buy and sell in a few years? When you want to realise your profit on sale who will want to buy this property?
earn how to use leveraging sensiblyBorrowing other people’s money to grow your portfolio is a great way to grow your portfolio quickly. If you do this make sure you are allowing for interest rate increases and rental lapses, etc. Work out a worst case scenario and then calculate how much you should borrow.
6:Buy under market value
You are more likely to determine the success of your investment by how you pay for your property rather than how much you sell it for. For example, if you purchase a property for say R600 000 with a real 20% discount you are already!
#7 – Get Educated
Learn about property by reading books, attending seminars, reading blogs and joining in discussions on forums like this one. If you aren't learning then you will find it very hard to succeed at investing. To start check out this list of the Top Ten Positive Cash Flow Property Books Reviewed#8 – Manage Your Cash Flow
You won't be able to service your loans if you don't manage your cash flow. Look for a mix of positive geared and negative/neutral geared and stay on top of your expenses. Increase rents in line with the market and don't rent out your property for below market rent. Increase your cash flow and you can increase your portfolio.Ryan McLean
Ryan McLean | On Property
http://onproperty.com.au
Email MeOne important thing to bear in mind is to find your property and buy it.
You can do this yourself or perhaps you have considered working through an investment company. Please be aware that if you do decide to work through a property investment company regardless of how good they say it is – you MUST get independent advice. You are investing hundreds of thousands of dollars. Spend the time and money to get trusted independent advice.
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