The 5 Must Do’s Before You Start to Invest in PropertyMar 10, 2021
by Julie Crockett, API Solutions Pty Ltd
The thought of buying a property seems daunting to most people but when you have a plan and you stick with it, you are one step closer to realising your dream. Property investing is like anything else and preparation is definitely the key to getting a great outcome.
There are some “absolutes” when it comes to investing and for those who haven’t started to invest yet, here’s the top 5 “must dos”.
1. Set Your Goals ( I call this Fully focussed female power)
Once you have your goals set, it’s much easier to work towards them. Break down the large goal into smaller goals so that you can check off each smaller goal that moves you closer to your big goal. For example, if you are saving $60,000 for a home deposit, have your goals in $10,000 chunks. When you’ve achieved each $10,000 milestone, give yourself a small gift to mark the occasion. It could be something very small like time out for a massage or a lovely bottle of something. Some people like a visual reminder of their goals and if that’s you, then put them somewhere you frequently visit so that you can ‘see’ how your saving is progressing. Determination and focus is the key keeping you on track with achieving your goals.
2. Get rid of your personal debt. ( I call this Taming the Spending Beast)
I just heard some of you gasp and say “like that’s going to happen any time soon!” It’s a challenge, especially if you’ve got into the mindset of working to support your spending habit. This one unhealthy habit will knock your dreams of home ownership on the head if you don’t take control of it – and you can.
There are some very effective ways to get your finances where they need to be and if you focus on the end goal of buying your investment property, then you can do it.
When you have control and consistent savings in the bank, you look very attractive to Lenders for your first home loan.
3. Save for a deposit. ( I call this Walking in the High Heels all night)
This is the part where you are feeling the pain of saving hard but you keep going because you are looking great – along with your bank balance.
It’s exciting to see your bank balance increase. However, here’s where you start to enter the danger zone. The more money you have saved, the more enticing it is to spend it on something that you convince yourself that you deserve. At this point – Be Strong – remember to keep moving forward to save that deposit. It will be worth it.
4. Get educated ( I call this Learning that sets you up for life)
Like anything in life, the better educated you are in a particular subject, such as property investing, the more likely you are to have a solid grounding in the basics and then make informed investment decisions. There’s so much that you didn’t learn at school – right? But you can get an education in property investing that will set you up for life.
It’s very much like learning to drive a car. Once you understand the basics and then get many hours of driving practice (skill), you become a good driver, provided your driving instructor was a good driver themselves.
It just makes sense to spend time learning about how to invest in property so that you can master the skill for yourself.
5. Get started (Time to hit the Go Button)
Now you have set your goals, shed your personal debt, saved your deposit, taken a deep dive into learning how to invest, everything is in place.
This is THE most satisfying step. You’ve done everything you need and you’re ready to hit the Go Button and start investing.