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New to property investing? Have you considered this?

4 Considerations for New Property Investors

Buying a property can be an exciting yet very complex financial investment. It can be a successful way of building wealth or securing a source of rental income. Due to this being such a challenging process, there are a multitude of factors that require consideration. 

Before making your purchase, it is best to consider these four fundamentals.

1.    Which professionals may be of use to you?

It is essential to seek professional help before investing. This will help ensure that you make an informed decision and maximise your return on investment. 

·      Financial Planner (or wealth builder): With expertise in planning, budgeting, and coaching. They can help you save for a deposit in the early stages and help ensure you keep up with your repayments. 

·      Mortgage Brokers: Are a valuable resource for investors looking to secure a loan, as they have access to a wide range of lenders to ensure you will be met with the best mortgage option, receive the best rates and terms, and will navigate the entire process for you saving you incredible amounts of time. 

·      Buyers Agent: They do the market research for you to ensure that you find the right investment property with the greatest potential for equity growth and will work with your long-term investment property strategy. They negotiate the sale on your behalf and ensure that you are paying the right price.

·      Accountants: will ensure the property fits in with your financial and strategic goals and help you understand and navigate any tax implications.

·      Solicitor or Conveyancer: There is more to property law than simply transferring ownership; they will ensure any contracts regarding your investment have been written and worded to protect you.

Professional offering help to new property investor

2.    Know your budget before you become a new property investor.

Knowing your budget before purchasing a house is crucial for making informed property investment decisions. Your budget is not just what limit your loan has been preapproved up to.

·      Discover and articulate your price range: After you have estimated your expected rental return and the ongoing costs of the investment (including mortgage repayments), decide what you can afford and how much you can comfortably pay back each month. 

·      Prevent Overspending: Have a pricing goal, do not go over it. To do this, try to remove emotion from the sale and maybe have a third party you trust engaged with you in the process to keep you accountable.

·      Balance out life’s expenses: By sticking to your price goal and staying within budget, you will have the funds to live your best life and not feel like you are living to pay off an investment.

Savings for new property investors

3.    Costs of buying and owning an investment property

It is crucial to consider the costs of buying real estate. In addition, it is essential to be aware of potential financial expenses. You may get caught off guard and face financial detriment if these are not considered.

Upfront Costs:

·      Stamp Duty: this is the tax you pay levied by states or territories on purchases, including properties. This tax will vary depending on where the purchase occurs and the property’s value.

·      Professional fees: Such as Conveyancing/Mortgage Broker/Financial Planner/Buyers Agent.

·      Purchase Reports: Such as pest & building and strata reports.

Ongoing costs:

·      Council rates: Rates are charged by councils to fund local infrastructure, roads, and several other similar services.

·      Insurance: Landlord and property insurance protects the owner against many life dangers, including fire, theft, and weather damages.

·      Maintenance: These expenses are incurred to keep the property in its original condition. These may fluctuate from small to significant costs varying on the damage.

Researching the costs involved in purchasing a investment property

4.    Researching the market

Researching the property market can be very beneficial when purchasing a property and will lead you to make an informed decision. This will enable you to narrow down which purchase is best for you and your circumstances. Assisting you in formulating a sound decision regarding location, property type and potential value (now and in the future). This will ultimately give you the best assistance on the correct timing for you to invest. 

·      What type of property do you want? What are your specific needs compared to your hoped-for desires?

·      Identify market trends and current market value by working out the current demand for and the average price of similar type properties recently sold in that area.

·      Identify potential risks; therefore, you can accept, plan for, or change them. Such as the property reduction in price, any unexpected costs, or even issues in the local area.

Researching the housing market to find the right investment property for new property investors

Are you ready to maximise your property purchase? Are you looking to achieve your financial goals this year? The professionals at Help My Wealth are here to help you! 

If you are ready to purchase or are only beginning your journey, let’s make this financial year count…so don’t wait. Reach out to us now at HMW, and let’s build our success together.

property investors


New to property investing? Have you considered this?



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