Whether you are making your first move into the property market or you are seasoned property investor expanding your portfolio, before purchasing an investment property it’s important to set some goals to help give you a clear idea of what you want to achieve at the end of it.
Here are some things to consider that will assist you in setting your property investment goals. You can also download our property investment goal setting worksheet.
Where are you now?
The process starts with understanding your current financial position so you can determine what you can afford. This involves looking at your income, savings, assets and liabilities.
Where do you want to be in the future?
What is your ideal lifestyle? Do you want a to be taking an annual overseas holiday? Buy a boat or a caravan? Be living a comfortable retirement not reliant on your super?
What’s your reason for investing?
By understanding your reasons for investing in property then you’re more likely to buy the right properties. Do you want to achieve long term capital growth, an income, tax breaks?
What’s your timeline?
Property is usually a medium to long term investment allowing you to ride out the cyclical nature of the property market. Consider how long you plan to have the investment for – 5 years, 10 years, 20 years?
What’s your attitude towards risk?
Establish your investment comfort zone. Are you conservative or aggressive? Depending on your risk profile and even your stage of life, you may prefer the security of a solid income and manageable cashflow, compared to high growth, low yielding property investments.
Your answers to these questions will help define your property investment goals and then the most appropriate investment strategy for achieving them.
These are the types of things you’d discuss with an IPP Australia consultant in your initial discovery session. From here we’d put together an investment plan highlighting the exact steps to take you from where you are today, to where you want to be.
