Many people that I speak to get so excited about looking for their next investment property that they fall into a time suck.
You see, they’ve started pounding the pavement and going to inspections before they’re clear on some strategic items, so they lose time looking at properties that won’t get them to their goal.
Does that sound familiar?
Well, I suggest pumping the brakes a little and making sure you decide on a few key things before you attend any further property inspections.
Here are 3 things to firm up and save yourself a mountain of time:
- Ensure finance is in place
It’s more important to have finance in place these days than any other time because it’s becoming increasingly difficult to get money out of the banks.
Once you are clear on your pre-approval, you’ll have the benefit of a budget to work with.
That means you can start fine-tuning your list to the properties that meet your budget, rather than looking at everything that’s out there.
- Decide on low-maintenance vs. some work required
It helps to know whether you want a property that needs a bit of work (or may require maintenance in the future), but that will get good capital growth.
Alternatively, you may prefer a low-maintenance property (“set and forget”) which might only bring modest capital growth.
Deciding on the level of maintenance you’re willing to put in can make all the difference in the type of area and the individual property that you subsequently end up buying.
- Take a top-down approach when searching
Instead, try a top-down approach.
Start with the state you want to invest in, then narrow it down to the suburbs you want to invest in.
Once you’ve decided on three or four key suburbs, then you can start homing in on streets and types of properties that are best suited to that area.
So, if you’re about to start searching for an investment property, remember to get firm on these strategic items before you start pounding the pavement.
Do that, and you’ll save yourself a mountain of time.