First Time Investor...

Whether you're 20 or 60, buying a house is a big deal. Buying a house and letting a stranger live in it, with the purpose of bettering your financial situation, is an even bigger deal...

As a 33 year old who has purchased 5 properties in the last 5 years, here are my top tips for the first time investor.

1) Do it. So many people truly believe that they cannot invest in property. Perhaps they think they don't have enough money, maybe no one else that they know has done it, perhaps they are afraid of making a mistake and would rather just play it safe... As a family with one income and three children, we have and continue to invest in property. Change your mindset. If you want it, believe you can do it and make it happen. 

2) Educate yourself. This might sound boring, however, you're potentially spending hundreds of thousands of dollars! Read a few books, listen to podcasts, meet with other investors and ask them your questions. Don't just buy a property, buy the right property, based on your research. Taking time to educate yourself may cost you time in the market, but it may save you decades of stress and/or losses...

3) Make a plan. Who spends $400k on a whim? Do you want one investment property, or 10? Do you want the tax and maintenance benefits of a new property, or the value adding opportunities of an older property? Are you in a situation to pay part of the costs from your work income, or does the rental income need to fully cover all the costs of holding the property? Will you pay principle and interest on the loan, or interest only? Are you holding the property for 10 years, 20...? There are so many factors to consider. Buying a property without knowing what you want is akin to arriving at the airport and getting on a plane without knowing where you are going. Make a plan before hand.

4) Have finance pre approved. While this is not a guarantee of full finance approval, this is important to have before looking at properties. Pre approval gives you a guide of what you can afford, so you don't waste time looking at properties you cannot afford, and gives you credibility/bargaining power when dealing with real estate agents.

5) Don't just buy something for FOMO (fear of missing out). The deal of a lifetime comes around most weeks. I've had properties that I was so dissapointed to have missed out on, only to have found a better deal the following week. Be patient. Keep the end goal in mind.

6) When you get to that point that you've found a property that fits your budget, your criteria, your long term plan... buy it. If you've done your planning, identified the property as fulfilling your criteria, don't talk yourself out of it for fear, and don't delay too long, close the deal. Remember that any offer you make should be subject to building inspections and finance anyway.

Regional property has for so many successful investors been a great way to begin their investing journey. Affordability, steady growth and good rental demand make many regional areas a fantastic place for beginning and experienced investors alike. If you'd like information on how we at regionalpropertynsw.com help first time investors, please get in touch using the form below.