Admit it …. you invest the idea of ownership, but as the fight to take action. Run like a business and can team with the far right …. your goals and expectations

Buy your first investment property (or third) can be a stressful process, especially since you decided to coordinate their action and need advice for the next step to do.

With so many options available to you on the property, it is not surprising that investors are confused with the type of property only if it fits. They often begin with a plot, first do more than their funding is structured properly.

Many investors do not buy more than 3 investment properties and those who want to sit in the top 8% of investors throughout Australia. Often, the reason why more than 3 investment properties is included:

1. to increase funding structure that limits Wrong portfolio and the flexibility
2. A negative experience with a property or a tenant
3. Fear can be used before the debt, buy an apartment

Although this list is not exhaustive, so the 3 parts of real estate investors take steps to ensure that they have to stop for their future.

By working with investors and education on the most important points I start to weaken the top three roadblocks are:

1. Funding Structure
2. Type of property and research
3. A team of professionals

Funding Structure

Most real estate investors start buying g the family home and building equity through capital growth over time and the largest payments and interest they bring to their bank.

The first step in examining the financial structure, the risk to the family home to soften by amounts allocated to investment properties with different lenders. This ensures that the family home not with the investment property as evidenced by the cross and therefore allows investors to sell assets under the control, which change their situation and they can not afford to keep the investment property.

By splitting your loan between lenders, you also reduce your exposure to an individual lender and the risk of a change in credit policy.

Top 5 tips when considering a funding structure:

1. Reduce the risk to the family home with a separate lender investment property
2. Separate housing loans (non-deductible debt), your investment loans (debts deductible or good) for reporting easy and Accounts
3. Ensure evaluation is performed based on the purchase of goods and not to use the equity in your home for any shortfall
4. Use a credit line against your family at home when the “big” is in budgeting, as it can be like a giant credit card and you take in more debt.
5. Select a lender who will keep your new credit facilities at no charge if you repay your home loan, you can reduce the time and investment credit for access to “good” for real estate investment further debt real.

should interest rates, fees and taxes are always a consideration when choosing a lender, but the right structure and flexibility, the first priority in order to meet your investment goals.

Type of property and research

When considering a property, the three main types are houses, units and townhouses with variations of these include, by region. All property types have their advantages and their critics, but anyone can be a good option for investors depending on their current situation.

Whatever the nature of ownership has decided should be used to define the basic principles to avoid the pitfalls:

1. Always an independent evaluation by a panel of Bank experts to ensure that you do not pay an inflated price
2. Seek to maximize ownership of midrange for the region, with a ceiling of $ 550,000 and income risk, capital growth and low
3. When building a new property, ensure that you make a clause in your construction contract with the construction cost to build when the operation is beyond the agreed time
4. Do you guarantee that the cost of a body corp and that this factor and prices when calculating your cash position
5. Using historical figures for capital growth and income for the comparative analysis of ownership and maximize your investment

When you buy a property there are fantastic tools, a suburb of reference, characteristics, and statistics can be used. These are essential tools to ensure that you include an informed decision that RPData, Australia Property Investment magazine and DTP software.

A team of professionals

Like any business, you must ensure that you have a great team around you for the good advice and to offer as a sounding board. Or a group of railway use all their professional services.

You need to build the team practice, since it is a long term relationship, like any other business.

Your team should consist of:

1. Finance Specialist
2. Accountant / Accounting
3. Solicitor (Property)
4. Financial planner (Insurance)
5. Property Manager

Real estate investing can be interesting and challenging, offering all Australians the opportunity to create wealth. By structuring your finances, standing most of the essentials and build a team of professionals, you will quickly find that investment property can be an effective strategy for wealth.