A frequent question many of our REBAA members get asked is “How do I build a property portfolio?” You can start a property investment portfolio with as little as $250,000. The key is making sure you have the property team behind you to help you reach your goals. Here are our top five tips to get you started:
- Get a good mortgage broker
If you’re ready to invest it’s best to speak to a qualified mortgage broker, one who is licensed and comes recommended. Finding a cheap rate is only one aspect of arranging a loan. A skilled mortgage broker will sit down with you to discuss your goals and find a loan that is most appropriate to your situation. Membership of a professional association such as the MFAA is also recommended.
2. Determine your budget
The next step is to sit down with an independent property investment advisor to work out your borrowing capacity. You can buy a good quality investment for $250,000 to $500,000 to kickstart your investment portfolio. Be sure your property investment professional is also licensed and preferably a member of the Property Investment Professionals of Australia.
- Define your goals
Once you have determined your budget you need to define your goals. You need to determine if you’re chasing capital growth, value-adding to your investment or chasing yield. Once you have determined your goals, you can then work with a qualified buyer’s agent to help you identify the best areas and price range you should work on.
- Research your property
It’s important to differentiate that looking at property is not researching property. Spending hours trawling through realestate.com.au is not thorough research and should not be solely relied upon. A professional REBAA accredited buyer’s agent understands the current market and will help save you time and money.
- Don’t be scared to diversify
Don’t just invest in your own back yard. You can buy borderless so don’t be afraid to invest interstate. REBAA has a valuable network of interstate buyer’s agents who can help with your next property purchase. Their local knowledge can be your eyes and ears on the ground.
