Starting your journey in property investment is like looking at a really tall mountain and not quite knowing where the track begins. But once you find that track, start hiking up the hill, take a few drink breaks and keep going, you’ll without a doubt reach the top and reap the ultimate reward: a photo for Instagram.

But the rewards to be reaped from property investment are much greater than a selfie. If done correctly, property investment can be your ticket to financial security, better work-life balance and even an early retirement.

So, let’s help you find the start of the hiking trail and outline a beginner’s guide in property investment, thanks to Australia’s expert property investment team at Patrick Leo:

Consider the basics

Right at the start of your property investment journey, there are some basic questions to ask yourself:

• What type of property am I wanting to buy? I.e. a house, unit, apartment or commercial?
• What’s my budget and how much am I willing to borrow?
• Where do I see myself in 10 years, 15 years and 20 years?

Thinking about these basic questions will help narrow down the type of investment property that’s right for you.

Put your heart aside

Property investment isn’t about buying what you personally like. It’s not about finding your dream home to live in. It’s about finding property with great prospects, high yields and great potential for capital gain.

Thinking with your heart and not your head is the biggest pitfall of many beginner property investors; they buy what’s personally to their taste, rather than something that’s great in terms of high yields and capital gain potential.

Instead, look at the numbers

Think with your head, not your heart. Assess factors such as:

• Capital gain: is there a good potential for capital growth in my first investment property?
• Yield: is there a high yield?
• Tax: is there a benefit in reducing my tax obligations? (not the most important factor in buying investment property, but always worth considering)
• Inflation: will I be able to weather a mortgage rate hike if interest rates increase?

Don’t dive in, but don’t dither!

Property investment is a long-term game. It’s not something you dive into after watching a couple of YouTube influencers on property investment, but it’s also not something you sit around dreaming of doing without actually putting your plans into motion. Diving in and dithering are two equally unproductive ways of going about property investing.

Instead, it’s best to consult a specialist team in property investing who will help you establish your goals and slowly but surely help you reach them.

We won’t sugar-coat it: starting your investment property journey isn’t a walk in the park. It’s a long hike to the top of the mountain. But that’s where the investment property specialists at Patrick Leo are here to help. We help you navigate the property landscape to find great property that improves your mid-to-long-term financial position but doesn’t interfere with your lifestyle. To start your journey, get in touch with our specialist team today.