Five Useful Tips When Purchasing Property
The adage, “a jack of all trades is a master of none”, applies perfectly in the real estate business as not everyone is cut out to be a landlord. However, in today’s rental market, it is one of the smartest ways to grow your wealth.
One of the main goals in investing in real estate for rent in Brisbane is putting your money to work today and allowing for it to grow, so you have more money in the future. It is crucial to keep in mind that the returns or profit you make on your real estate should be sufficient enough to cover the risk you take, the taxes you will pay and costs of owning the property.
The real estate market has produced accounts for many of the world’s wealthiest people but getting started in investing in the real estate property market and becoming the next property tycoon is not an easy process. Before venturing out to become the next tycoon like Donald Trump (not meaning being president), here are some useful tips when purchasing real estate property for rent in Brisbane;
- Make Sure It Is For You.
Do you know the difference between a spanner and pliers? Are you good ar repairing drywall or unclogging a toilet. Calling an expert to sort out any problems is the best solution, but it eats up your profits.
To save money, many if not all property owners do their own repairs and if you are not good with your hands, being a landlord might not be for you.
- Pay Down Debt First.
A savvy investor could include their debt as part of their investment portfolio, but for an average Joe like you, it is advisable you avoid it. Purchasing or investing in real estate property for rent in Brisbane will not be feasible should you have outstanding student loans, unpaid medical bills or children who will be attending university soon.
If you return on your real estate rent in Brisbane is higher than the cost of debt, it is not necessary to pay down your debt.
- Secure The Down Payment.
A larger down payment is required for investment properties, and they come with stringent approval requirements. The down payment needed for a home will be sufficient for an investment property, and a large percentage will work considering there is no mortgage insurance for real estate properties for rent in Brisbane.
- Beware Of Higher Interest Rates.
The interest rate on a real estate property for rent in Brisbane will be higher than that charged on traditional mortgage interest rates. You will need your mortgage to be low so that it does not significantly eat into your profits.
- Do Not Buy A Fixer-Upper.
We all love bargains that save us money, and it will be tempting to purchase property at a cheap price and flip it into a real estate property for rent in Brisbane. Unless you have a contractor who performs quality repairs at affordable prices, it is a bad idea to purchase a property at a bargain if it is your first property.
It will be a savvy move to purchase property that is a below market price and requires minor repairs.
With an extensive and impressive array of real estate Brisbane properties, you can rent out, Wilson Property Group is the perfect place to begin your property investment journey. Get in touch with us today!
Related Tag: Rental Properties Brisbane