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Setting Goals Is Key to Successful Property Investing

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Don’t jump into property without reading this first. Here are our tips for setting property investment goals.

Whether you’re embarking on a new property investment journey or you’re taking the opportunity to review your current portfolio, setting goals is a great way to ensure you keep moving forward. Many of us find it hard to set goals, so we’ve outlined some tips to get you started.

What’s your reason for investing?

Buying property is a significant financial decision and one that shouldn’t be made lightly. So, it’s important to know your motivation for buying and how you see property as part of your overall investment strategy.

From a financial perspective, are you looking to:

  • Earn a regular income
  • Reduce tax
  • Build equity through capital growth
  • Keep the property for retirement

Making decisions without thinking about what you want to achieve means the property you buy could ultimately be unsuitable for your overall investment plan.

Work out your investing time frame

Property investment typically needs a medium to long term commitment to make sure your returns aren’t affected by short term market movements. Expecting quick results and selling when expectations aren’t met could lead to financial loss.

Run the numbers

Speak to your YBR mortgage broker in advance and get a clear picture of what you can afford. Their advice will guide your search and help you narrow down the suburbs you consider and the type of property you buy. Taking proactive action like this will also put you in a stronger position when it comes time to negotiate on a purchase.

Get tax advice

Speak to a property tax accountant to understand how property investing will affect your income and tax position. There are several tax advantages available to investors, and a specialist accountant will help you make sense of negative gearing and the deductions you can claim at tax time.

Do your research

Finding the right property is the key to successful investing. And it’s one time where you need to leave your heart at the door and let your head take over the decision-making process. Unlike your family home, you have specific financial expectations from an investment property, and you’ll need to consider outcomes (not emotions) to meet those goals.

You’ll need to consider:

  • Is the house suitable for the suburb demographics?
  • Access to public transport, schools, and shops
  • Age and condition of the property
  • Rental yields and vacancy rates.

Set those goals!

It’s satisfying to reach goals, and they also help to keep you focused along the way. If it’s a big chunky goal you’re aiming for, break it down into smaller ones to stay motivated. Make your goals measurable and don’t forget to celebrate your wins.

If you want the confidence and clarity to get started with property investing, have a chat to us. We’d love to help with your property investment goals.

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