The Door to Investing
So you want to invest in property? If you’ve seen the news, read the articles and been religiously checking the web for potential investment properties, then you know that 2021 is going to be a BIG YEAR for property in Bundaberg.
In fact, the REIQ’s Chief Executive, Antonia Mercorella, recently tipped Bundaberg as a rising hotspot for 2021 in this article. “The regional tourism centres of Queensland like Bundaberg, Townsville and Mackay have so much to offer,” she said.
“Great affordability, relaxed lifestyle and easy access to some of Queensland’s favourite attractions such as the Great Barrier Reef – it’s easy to see why these markets soared in 2020 and will continue to do so in 2021.”
Smart Property Investment continues by predicting that regional areas are set to experience the strongest rental market growth in 2021, outperforming the metropolitan areas. This is on the back of the tightest vacancy rate Bundaberg has seen in 12 years.
High rental demand is gold dust for investing, but when it comes to putting a plan into action to get the ball rolling, do you hit the brakes? If you’re someone that does this, you’re not alone and it’s not surprising. A lot of people get overwhelmed by the process and give up the dream before they even begin. But it doesn’t have to be complicated. Reality is, property investing is relatively straightforward.
To help you begin your journey or focus on a starting point, Scott Mackey, Principal of RE/MAX Precision has shared a helpful guide to starting a property portfolio, without losing your mind.
CHECK YOUR FINANCES
List all of your assets, including incomes and work out your expenses. This will give you an idea how much cash you have available to invest. If you have a stable and reasonably good paying job with solid employment history, you shouldn’t have a problem getting a loan.
GET A PRE-APPROVAL
You can get pre-approval through your lender directly or through your trusted mortgage broker. However going through a broker before applying for a pre-approval can be beneficial if you’re not sure you’re financially ready to invest.
Don’t apply for multiple pre-approvals at once. Each time you apply, the lender will check your credit record. If there are multiple inquiries, this sends a red flag to the lender and may dismiss your application.
SET GOALS
Property investors generally invest in property to secure their financial future or to be free to do what they want, when they want it.
In order to achieve your goals, you must first what your goals are. More importantly, you need to set a deadline as to when you want to achieve these. Then you can work backwards.
START BUDGETING
Budgeting is the only way to ensure you’re able to balance your income and expenses. It allows you to see where you’ve been spending your money and helps you to plan for bigger expenses down the line.
BE INFORMED
Knowing the market can be vital to making the right investment choice. Speak to professionals and continue to watch the market in areas of interest. There’s no such thing as a property psychic and while there are tried and true methods to research, no one can make guarantees. Understanding your tolerance for risk will help you shape how much you’re willing to take on over the shorter and longer term.
Being informed also means being wary of get rich quick schemes and property peddlers. If someone is promising you guaranteed returns and overnight riches, walk away; the only person getting rich is them.
STAY FOCUSED
Make sure you stay focused. Investing in property is a business decision, not an emotional reaction.
– Get clear about what you want to achieve
– Set a date as to when you want to achieve this goal
– Identify milestones you need to do to get to your goals
Information is key to keeping a level head and your real estate ducks in a row, and we can help you.
For more great tips on how to make the most of Bundaberg’s imminent property boom, give the team at RE/MAX Precision a call today.
