Property investment for beginners in Australia, can leave you overwhelmed by conflicting tips, steps or guides on how to start a rental property portfolio. I will go through the BASIC beginners guide to property investing in Australia (step by step, the things you need to consider before building a property investment portfolio).
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Many of the steps are familiar to common personal finance principles, but I'll explain how this is important for a beginner property investor.
The first area is to set your budget so that you know how much free cash flow you have to purchase a rental property. While cleaning up your spending, it is important to consider paying down high-cost debt, because property returns will generally not exceed the costs of high-interest debt.
As property investment is a long term investment, you need to get your partner on board and map out your life's large expenses and impacts to free cash flow. Then speak to your partner about your goals for your property investment portfolio and any the anticipated impacts to your current financial situation.
Investing is all about small 1% improvements that add up and compound over time, so before you through an investment property into the mix. It is best to tidy up all your other investments at the beginning.
With the help of your budget, work out how much liquid assets and free cashflow you have to devote to a property investment portfolio.
Then once you've worked our your own direction consider speaking to a financial planner and finance broker. These two professionals are important in getting the right advice at the start.
When you're starting out in property investment, it is important to avoid sell-side advice. Also, a property investment strategy is never a one size fits all approach, the types of rental properties you will want to own will change at different stages in your file.
Then it is important to identify the types of property investment strategies (this can include being an active or passive investor). There can be a cashflow focused or growth-focused property investment.
The best way to work our which property investment method suits you at the beginning of property investing is to work out what stage you're at in life and your core competencies.
Once you've worked out what method of property investment you're considering, work on a basic property investment plan. This is handy to get your head around the expenses on the timeline of the investment.
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By: Kent Cliffe Title: Property Investment for Beginners AUSTRALIA (Guide to Buying a Rental Property) Sourced From: www.youtube.com/watch?v=DkKeJObrv1s
