Purchasing an Investment Property
Brisbane Finance has assisted Single Investors; Families and General Investors over the years get their first and subsequent Investment Properties. Sometimes the idea of Investing can seem a daunting prospect however it really is easier than you think when it comes to property investment. In conjunction with other associated professional Brisbane Finance will assist provide the right structure for wealth creation.
Important Rules to Follow when Investing in Property
OBTAIN INDEPENDANT LEGAL ADVICE
It is very important to take the time to get independent legal advice prior to purchasing an Investment Property and once you have chosen which property to purchase then get your Solicitor to look over the Contract prior to signing.
ACCOUNTANT/TAX IMPLICATIONS
Speak to either your Accountant and or Financial Advisor to look at your overall financial position and the impact of purchasing an Investment Property. Also speak to your Accountant about obtaining a Depreciation Schedule for your property and what this will mean to you at Tax time. This may include obtaining a Quantity Surveyors report on the property.
LOCATION
Purchasing the right Investment Property in the right location is sometimes hard to get right. You should look at several factors such as location to Schools, Shopping Centres, Transport as well as current and potential new infrastructure in the area.
TAKE EMOTION OUT
As this will be an Investment Purchase you do not need to get emotionally involved with the property ie: fall in love with it. You need to focus on why you are purchasing the property and what the long-term gain will be from such a purchase.
RESEARCH POTENTIAL GROWTH AREAS
It is important to take the time to research the areas you are interested in and look at Growth Reports both current and previous to get a indication of the market.
PROPERTY MANAGEMENT
Decide if you want to look at managing the Investment Property yourself or getting a Rental Agency to manage the property. We do see some clients deciding to go it alone however if something goes wrong then it is very hard to work out what to do and could end up being more costly in the end.
INSURANCE
Make sure you have good House Insurance along with Landlord Insurance. Landlord Insurance is an essential insurance to have, a good level of cover should cover, loss of rental income, vandalism or malicious damage and theft.