What about your budget?
Property investing is very popular in Australia. And, right now, the Coorong region presents some really good, and affordable, buying opportunities.
If you are like me, the idea of buying a house, renting it and watching my asset grow is very appealing.
But when you are starting out in property, there are a few fundamental questions that you need to consider, like can I afford it?
Right up front, at purchase, you need to make sure that can cover the full purchase cost of the property which includes the price of the house plus stamp duty, conveyancing and transfer costs.
And, then you will need to factor in your monthly running costs. It is unlikely, when you are starting out, that your rental income is unlikely to cover all of the mortgage repayments and other expenses that are part and parcel of maintaining a property, such as council and water rates.
Prior to any purchase, it is important to work out your property budget to make sure that you, together with the rent, can cover the monthly spend.
So, it is quite likely, that your investment will, in the short term, cost you money.
A good Sales Agent and/or Property Manager can help you work out your total purchase and running costs. But, it is really important for you to think about your financial back up plan if something changes.
Something like you loose your job, you cant work or if the property is vacant for a period of time. Build yourself a buffer and know how much you need.
Once you have your budget and back up plan sorted, you are an important step closer to being investment ready.
For more information on investment influences, news, growth, business and property opportunities, stayed tuned to the Invest Coorong blog or follow us on Facebook.
Coorong Realty is a visionary property solutions company that is changing the way you buy and sell real estate, manage your investments, create long-term wealth and find financial freedom.
Our focus is to connect people with the right property solution for them, whether it is an investment opportunity, property management or one of our all-inclusive accommodation solutions.