9 Steps To Successful PROPERTY INVESTING In Seven Hills NSW

PROPERTY INVESTING

Where do I start? A com­mon ques­tion asked by all people who have heard about prop­erty invest­ing and under­stand that it is an avenue for wealth cre­ation but are not quite sure what or how to buy a property.

1. Decide what sort of investor you wish to become.

Do you want to invest for Pos­it­ive Cash flow, Neg­at­ive cash flow, ren­ov­ate & sell, Sub­divide or develop. These strategies are very dif­fer­ent from each other and require a dif­fer­ent skills set. Of course you can learn these skills sets but you first need to mas­ter one strategy before mov­ing onto some­thing different.

An example of a strategy you might fol­low is; buy­ing and hold­ing, receiv­ing neg­at­iv­ing gear­ing bene­fits to reduce your tax and buy again when your equity has increased. Next you might move onto buy, ren­ov­ate and then hold. This increases the equity quicker and also allows you to get a greater rent. This can then lead you into renov­at­ing prop­er­ties and then devel­op­ing. Of course these strategies aren’t for every­one, so con­sider what you actu­ally want to achieve out of investing.

 

2. Get your fin­ances in order. your Seven Hills NSW investment property

This is a very import­ant step. Before you go look­ing for prop­er­ties you need to check how much fin­ance you can get. It might be that you have to pay off a credit card, you might need to save a lar­ger deposit or you may need to look for another job. These will all  form part of your goals.

 3. Set out your goals.

After decid­ing what sort of investor you want to become and determ­in­ing if you can obtain fin­ance, you need to set out some goals that will focus you on becom­ing that investor. Your goals should be spe­cific and achiev­able. You need to start small, unless you have end­less fund­ing this is not some­thing that will hap­pen tomor­row. Prop­erty invest­ing is a long term strategy.

 4. Make an appoint­ment with your account­ant to dis­cuss struc­tur­ing options.

Once you have decided on what type of investor you want to be and how many prop­er­ties your fin­ance will allow you to buy, along with your goals that you have set, your tax account­ant in Sydney and you can sit down and work out a struc­ture. Your struc­ture will vary depend­ing on neg­at­ive gear­ing or pos­it­ive gear­ing, it will also be com­pletely dif­fer­ent if you wish to buy and sell or develop. Get­ting your struc­ture right from the begin­ning is the most import­ant part of this process.

The costs involved to setup a prop­erty struc­ture now will vary and you might think they are expens­ive, but try­ing to trans­fer prop­erty later could res­ult in you hav­ing to pay stamp duty on the trans­fer. If you are think­ing of trans­fer­ring prop­erty to a trust to avoid bank­ruptcy and cred­it­ors get­ting it, think again, there is a 4 year claw back in which it can be clawed back to become part of your bank­ruptcy.  The upfront cost will become well worth it.

 5. Research your invest­ment property.

Become a prop­erty spe­cial­ist within your chosen area. You might select a small area of Sydney or a lar­ger area like the Inner West. Whatever area you choose needs to be afford­able within your budget and needs to fit within your invest­ing pro­file and goals. I always look for prop­er­ties within 15km of cap­ital cit­ies to reduce my risk.

 6. Look for prop­er­ties for sale.

Now the fun begins. you will need to sort through the numer­ous amount of prop­er­ties for sale and set up appoint­ments with agents to go through the prop­er­ties. You should use a check­list to make sure the prop­erty has everything that you have learn’t from your research to bring in top dol­lar rental.

Register your buy­ing require­ments with agents in your local area and on all rel­ev­ant real estate web­sites. Com­mu­nic­ate reg­u­larly with local agents so they inform you of new list­ings as soon as they become available.

Develop a rela­tion­ship with a Real Estate Agent around Seven Hills who spe­cial­ises in your pre­ferred area and get them to work for you. By doing the Real Estate Agent will leave no stone unturned search­ing prop­erty that suits your require­ments and they may even find a home for you that is not cur­rently on the market!

7. Sub­mit offers and start to negotiate.

Once you have found a prop­erty that fits your cri­teria, sub­mit a real­istic offer that you believe is mar­ket value for the prop­erty based on recent sales and your research. Not every offer you sub­mit will be accep­ted and you may need to nego­ti­ate dif­fer­ent things within your offer. For example, you may ask for delayed set­tle­ment, or early access. Make ALL offers sub­ject to pest & build­ing and fin­ance approval, this is even if you have approval from the bank.

8. Appoint a Solicitor.

They will review the con­tracts and point out an issues, they will also organ­ise your pest and build­ing inspec­tions for you. They will also handle any fur­ther nego­ti­ations you need and will con­duct the set­tle­ment of your property.

 9.  Con­grat­u­la­tions.

You have bought your first invest­ment prop­erty. Now to do it all again…

About 

Brad Cal­laughan is a spe­cial­ist in tax­a­tion, account­ing, busi­ness advis­ory and fin­an­cial plan­ning. He is the man­aging dir­ector of Cal­laughan Part­ners that was formed to deliver and exceed client’s expect­a­tions, whilst char­ging upfront fees. Brad is an avid prop­erty investor and ren­ov­ator. Brad is often quoted and writ­ten for such pub­lic­a­tions as Aus­tralian Prop­erty Investor, Sydney Morn­ing Her­ald, The Age, My Busi­ness magazine, Smart Start-up, Dynamic Busi­ness, Fly­ing Solo, Shoe String Media, PropertyInvesting.com. Brad enjoys devel­op­ing his own busi­ness interests and prop­erty port­fo­lio along with his interests in golf, horse and dog racing, NRL, sports & fishing.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia