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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