7 RULES FOR INVESTING IN PROPERTY - By Peter Lees
Some people buy a property
and reach a point where yesterdays
properties help pay for the
one that you bought today.
In fact a collection of 30, 40, 50
properties with the entire portfolio
self funded is not uncommon.
So how do you start out? Well
that’s a bit like the old question,
“how do you eat an elephant?
The answer is of course one
mouthful at a time. The same
applies to property.
1. Start with research
• Read the right books.
• Talk to your accountant about
the best structure for you. For
some buying in their own name
is
best. For others a company or
trust structure is better.
• Learn about values in your
market.
2. Finance
Talk to the right bank or finance
broker to know your borrowing
options. you are far more
attractive to a seller if you are
able to make an offer to purchase
that is not subject to
finance
so talk to your lender about
becoming pre-approved.
3. Find an agent that you
can trust to always tell you
the truth
An agent that understands
property investing is a huge
advantage.
4. Property selection
Buy the right property rather
than
what looks like the biggest bargain.
Remember if it looks like a bargain
it is probably because no
one wants to buy it. The same
may well happen when you
want to sell it.
5. Tax benefits
Understand how the wording
of the contract of sale may well
set up the tax benefits (depreciation
and negative gearing) of
your purchase for decades to
come.
6. Getting YOU right
Get yourself emotionally ready
to make the decision when the
right opportunity knocks.
Too many buyers get
overwhelmed with nerves at the
crucial moment.
This causes them to make offers
that they know at a subconscious
level will never be accepted.
This keeps them safe,
but they never get to enjoy the
financial security that property
investment presents to those
that own the monopoly board.
7. Looking after your investment
Your accountant and your property
manager are your greatest ally
in this venture. Select them very
carefully. They both need to be
knowledgeable and accessible.
They need to bring their own
contribution to the partnership.
After all this is not a one year
plan. It is a choice that you will
live with for decades and is
capable of providing great
peace of mind.
Property investment is not for
everyone. However for those
suited it provides immense
emotional and financial security.
More than that, it gives you
a passion and an interest that
may endure your entire life, and
maybe for the lives of generations
to come.
Graham Lester
Graham is known for his passion and his drive to succeed in all aspects of his professional life. A man with a big vision.
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Graham is known for his passion and his drive to succeed in all aspects of his professional life. A man with a big vision, Graham has immense pride in the company he directs; and is particularly proud of having been awarded the BDH Cup in 2010, and becoming one of the top 10% of performers in Australasia while maintaining a 79% repeat and referral client ratio.
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