When choosing to explore new financial opportunities, often time's people are not fully aware of the amount of work it takes when it comes to planning, researching, and maintaining these investments and the future risks that may be associated. To make things easier for beginner investors, here are four key steps you need to consider before choosing to buy investment property.
The second step
Ensuring you receive the right advice and guidance.
Employing a third party to help you does not automatically mean your idea will not fail but, choosing professionals who have invested or are investing in their own property portfolio will provide a personal understanding of your needs and therefore provide you with relevant guidance. Knowing the market needs to be blended into this step to determine whether there is an upward opportunity for investment valuation.
The final step
Establishing your risk tolerance. Risk tolerance will be different for each investor and identifying what your risk tolerance may be is a personal choice. It is important for you to review your attitude to risk as this may need to alter depending on what a bank is willing to lend you and what loan conditions are imposed. Your risk tolerance level will also change as you age and when your family circumstances change, which includes reducing your hours of work.
Before committing to a direct property investment option ask yourself;
Are you prepared to spend your free time maintaining and planning your investments?
Do you have the right professional help to make key planning decisions?
Are you fully aware of the risks involved and what they mean for your wealth and lifestyle?
Here at Financial Architects, we offer services you will find useful in answering all your questions and when it comes to investing in your first or additional rental property opportunities, which can be found here.
To receive a complimentary meeting with the team to discuss your options contact us here or book an appointment.