Buying an investment property is a great way to diversify your assets and can provide income or growth over the long term but it is still an investment and as such you will need to do your homework. Unlike some other asset classes, there are generally higher transactions costs to enter and exit this asset class and this needs to be taken into account in order to determine the appropriateness of the investment. There are pros and cons buying an investment property but proper analysis will help you determine if this is the best strategy for you.
Things you might consider:
- How will you fund this investment? Equity from your own home, savings, superannuation funds, borrow from a bank?
- Have you done any due diligence on the property?
- Do you have the right professionals on your team behind you?
- How will this impact you from cash flow and tax situation?
- How long do you plan on keeping this investment?
- Have you stressed tested the numbers to work out if you can really afford this?
- How does this fit into your financial plan?
Speak to us today and we can help you put together your plan to help you achieve this and many of your other goals.
Let us know how we can help