In part 2 of our series on the 8 most common questions that property investors are asking at the moment, we look at questions 5 to 8 on issues such as property management, long term strategic plans and how to determine the costs of buying a property.
5. Can I Afford An Investment Property?
The short answer to this is generally yes, most people can afford an investment property as long as they plan carefully, get the right help and can manage their money. The long answer is that everyone’s personal circumstances are different, with different assets, earning power and property goals. If you are really interested in becoming a property investor then you should do as much research as possible, get assistance from experts in the field as well as professionals such as accountants or financial planners to ensure that it is the right move for you.
6. Do I Really Need A Long Term Property Strategy?
Taking a long term approach to investment property – over a 10 to 15 year period – is the right way to ensuring that you can ride out any short term fluctuations in the market, benefit from stable rental returns and capitalise on market growth. When it comes to building wealth through an investment property, the best people to contact are those who are experienced in helping people create long term plans for their future. If you can find a company such as Ironfish where the employees are also property investors themselves then you know you are in good hands.
7. Should I Manage The Property Myself Or Get A Professional Company To Do It?
You can manage your property or even multiple properties yourself, however there is a reason why professional investors tend to hire property management companies to sort out all the day to day issues including finding tenants, collecting rent, sorting out bills and being the contact point for all correspondence. You just have to think of it this way – should you be spending your time dealing with property management or would it be better spent doing research and focusing on new investment opportunities?
8. What Are The Costs Of Buying A Property?
Apart from the deposit and mortgage, general property costs include things like stamp or transfer duties, and bank, broker and conveyancer fees. These will vary according to the state or territory you are purchasing the property in and your individual circumstances. The type of fees will also depend on the kind of property you buy – for example, the fees for off the plan apartments are often offered at a discount, and there may be substantial stamp or transfer duty deductions for brand new properties. It is always a good idea to have a small fund put aside for such expenses before considering buying an investment property. If you are dealing with a property investment company such as Ironfish then they will be able to help you determine the overall costs of a new property.