For those who are just getting started on their journey and thinking about buying their first investment property, these are our top tips for first time investors:

1. Consider budget and financing

The first tip, and arguably the most important consideration is your budget and financing.

How are you planning on paying for the investment property? Speak to a mortgage broker and get an idea of what you can borrow and be sure to factor in the associated costs from legal fees to stamp duty taxes.

2. Decide the best ownership structure

Secondly, we’d recommend an investor explores how they will structure ownership of their property.

In many cases, it can be that establishing a limited company in advance of buying an investment is the most effective and efficient vehicle for ownership.

3. Set Goals

Tip number 3 for first-time investors is to Set Goals. Knowing what you want to achieve can make all the difference. Will this be your first and only investment or are you planning to build a portfolio – knowing this from the start will shape purchasing decisions.

4. Location – where are you going to buy?

Our fourth tip for first-time investors is to focus attentions when it comes to the location of a potential investment.

We strongly recommend investors focus on urban centres, properties close to places of work, well-connected by rail or road and those close to local amenities, shops, and eateries.

5. What type of property will you buy?

Our final tip for first time investors is regarding the type of property.

When finding a hands-off rental investment that will require minimal maintenance and maximum growth potential whilst appealing to professional tenants and achieving the highest possible return – few property types can trump a modern development.

Those that are able to secure off plan will also reap the rewards of securing below market value at the earliest stage and benefit from greater value uplift as a result.