When it comes to investing, buying a property is one of the best ways to get your foot in the door. With the security of a physical asset that will only appreciate in value, many keen investors aim to purchase their first live-in asset in their twenties, and add to their portfolio slowly. While property investment has long been seen as a fail-safe option for those looking for financial security, this path is no get-rich-quick scheme.

Just like any investment, there are things to consider before getting your foot on the property ladder. Seeking expert advice can be the difference between a successful investment property and a stress-inducing money drain. With that in mind, let’s discuss some of the things you need to consider before diving into the world of investment property.

Consider your personal circumstances

The most important part of investing in property is understanding how your purchase lines up with your circumstances. While it may seem appealing to get the most expensive property possible in a high-growth area, are your outlying expenses going to allow you to service the mortgage and interest? Do you eventually plan to live in the property, or is it purely an investment for the future?

Before committing to property investment, make sure that your cash flow can support your plans, and consider how a mortgage may affect your lifestyle in the future.

Know your borrowing power

When buying an investment property, chances are that you’re going to need a mortgage. Banks consider factors like lifestyle and existing lines of credit, meaning that your borrowing power is going to be different to that of your neighbours.

A first-time buyer with no financial commitments is likely to have different access to government grants, concessions and mortgage rates than a family of four with a car loan and an existing residential property. Speak to a broker to understand just how much you’ll be able to borrow, and what kind of deposit is required for your dream investment property.

Choosing the right property for you

Not every property is bought with the intention of spinning a profit straight away. Many investors make their choices based on the growth of the area, or choose to renovate or rebuild before releasing it to the market. Whether you’re choosing a fixer-upper, or want positive cash-flow immediately, it’s essential to carefully evaluate potential properties to ensure that it aligns with your short-term and long-term goals.

Play the long game

The property game is a marathon, not a sprint. While some properties are good to go from the day of settlement, others will take years of careful maintenance to begin spinning a profit. Factors affecting the profitability of a property include the age, facilities and area, and can often result in negative gearing for the first few years of ownership. Be patient, and your property can be a fantastic step to securing your financial future.

Let a broker help you make the right choice

At BrokerCo, we understand the nuances of the property market and how important your first investment can be. We match you with a professional mortgage broker to assist you step by step, so you can feel confident in your investment choices. With years of experience, BrokerCo can help you save time, money and stress in helping you build your future financial freedom. If you’d like to learn more about our services, or how a BrokerCo mortgage broker can help set you up for success, contact us today!