Last time we spoke about how to select the Right Investment Property. Where to look and what too look for.

This time we are going to dig into the nuts and bolts of getting your perfect investment property.

I want to help you, to guarantee that the property you finally select as your investment property, is exactly the type of property you want. In an area you know will have the most likely hood of being “Fully Let”, with your tenants helping you every week.

And most importantly, you want to pay a very good – no let’s say an excellent price for your investment property too.

This is a tall order I grant you.

That said, putting into practice all the essential components I have suggest for you in this series of articles will allow you the greatest opportunity, for your investment property to be a success.

Now comes the hard part. The Grind.

The Grind refers to the homework you are going to have to do to find the right investment property. There are very few ways around the grind if you really want to be successful in property investment.

The process I will describe, to help you select the right investment property has been used by savvy property investors for… a long time.

This is how people who make there living from property investment select their next property. And so should you.

Robert Kiyosaki, author of the Rich Dad Poor Dad series of books uses the method I will describe for you here. The bad news is there are no shortcuts to doing the Grind.

Once when asked “What advice do you have for average investors?”. Robert Kiyosaki answered. “Don’t be average”.

The Grind, in my opinion is the best way to select an investment property there is. And is not the way “average” investors select their investment properties. So let’s get to it.

Selecting the right investment property is probably the single most important component when it comes to investing in residential real estate.

Even if every other facet of your investment property is perfect in every way, selecting the wrong property – “A Dog”, a bad/poor performing investment property can set you back years.

Selecting the wrong property as your first investment has the potential to derail your entire investment plan and jeopardise your financial future.

This is especially the first time round. The reason being is that your first investment will become the cornerstone to your future investmenting potential. So it is worth spending the time getting it right, so let’s get on with it.

First thing you have to remember that you are buying an investment and not a home.

The main criteria for your investment property is finding somewhere that will have the greatest likelihood of being fully let 100% of the year. This is vital to help minimize any holding costs associated with your investment property.

In other words we want your investment property to be rented (and paid for) every week of the year.

Finding a property to fulfil this very important requirement may sound complicated and without a system to use to help, it is.

I am hoping that by the end of this series of articles, selecting the right investment property (along with every other part of property investing), will be a little clearer for you and a much more achievable thing than you have thought possible before.

Who Will Live in My Investment Property?

To start with, we have to think of who will be living in our property. Once we have the “who” part of the equation it becomes easier to know the things your prospective tenants (bless’em) will want and need in a property they would choose to live in and rent, what will make there ives easier.

I try and picture a young couple, married a couple of kids, both parents working. What kind of home would these people like to rent?

What type of Locations Should I Look At for My Investment Property?

Close to schools would be a consideration. Good access to public transport, shops and services.

If you can find somewhere within 10 or 15 minutes of the water as well, you will see a higher demand for your property than normal. Australians love the sea and being close to the water, any water. (Read Sea Change by Bernard Salt)

How Much Should I Pay For My Investment Property?

When thinking of how much you need to spend on your Investment, I think of it this way. I tend to stay with averages. Nothing too expensive and nothing too run down (unless you are thinking of a renovation – that’s another topic I will have too cover at a later date).

The reason for this price point is to have a property for rent that appeals to the largest possible percentile of the renting population.

It is impossible to have an investment property that will suit everyone, so when choosing the right property, it is a good idea to select one that will appeal to the widest possible audience.

A run down, older home will be cheap to buy and rent out, but the demand on this end of the property renting market is lower, and you have too also consider the type of tenant you want to attract…

The same is true of premium properties at the top end. Sure they can command much bigger rents, though once again tenants may be in short supply.

The middle ground is by far the safer. There are just more people in this segment of the population, and therefore more people after what you have on offer. Your investment property.

This covers all you need to know about the type of property you are looking for. Knowing what you are looking for puts you ahead of your competition immediately. After all, how can you expect to hit a target if you don’t know what you’re aim at?

In my next article – Part 2 of How to Select the Right Investment Property I go through the process of finding the “Perfect Investment Property” for you.

I call it the “Grind”. It takes some work, though it is a tried and true method that has worked in any property market at any time of the property cycle. This is the way savvy property investors make there decisions.

The Grind is a system for investment property selection that will work for you too.

Have a Great Day

Jamie Wadley – HunterWide Home Loans

The biggest stumbling block for many people when it comes to investing in property is, “Where is all the Money going to come from”? It is an excellent question.

Well we all know the answer to this question of course, the Banks and Mortgage Lenders.

The real question then becomes, “How do I convince a Lender to let me have the money I need to invest in real estate”?  In this two part series I will cover exactly that.

To get your investment finance working hard for you and do it right, you really need to own or be paying off your own home. You need some equity.

Let me quickly add that you can invest in property without owning any Real Estate right now. It just requires a lot of your own money to make it happen.

As a rule of thumb I normally count on your having 16-18% of the purchase price of your proposed investment property in your hand if you don’t own already Real Estate.

This topic really deserves a separate article of its own so I will cover the different ways you can invest in residential Real Estate without already owning property at a later date.

Now back to, where does all the Money to come from to buy your first investment property.

What we want to be able to do is buy your investment property without using a cent of your own money. No, I am not crazy, it is possible and to do it we need to work with more than one lender to make it happen. Here is how it works.

Now I am assuming here you have your own home and have been either, paying it off for at least 3 to 4 years, or indeed own your home outright.

Because you own your own home (or are paying it off now), you have built up “Equity” in your home.

Equity just refers to the money you have locked away in your home, not in a safe but in the bricks, mortar and earth beneath. See, Property is a good investment.

Your equity is a result of the growth of the value of your home since you first purchased it. It is real money that you can access and use for whatever you want. I recommend buying more property with it but I am very one eyed.

What we want to do is use some your equity to help you invest in another home.

Your equity will help fund (and act as security for) the deposit of your first Investment Property.

This money will also cover any and all of the set up costs associated with making your investment property happen.

Things like Solicitors fees, Stamp Duty, Loan Application fees – that type of thing. They all cost money, and you have to pay for it – but not with your own cash.

In part two of this article I will talk precisely about buying an investment property without using one cent of your own money.

Have a Great Day

Cheers

Jamie Wadley – HunterWide Home Loans

I like Real Estate because it is a rock solid investment. Property Investing in Australia can also be simpler to do as a long term investment plan than any other investment vehicle I know.

I don’t include superannuation here as “Super” is a savings plan and not an investment.

There are very few assets you can own where you can be almost 100% confident that your investment will never be worth nothing. A notable exception here is the Sub Prime Mortgage crisis in the United States starting in 2006, the effects of which we are still feeling today.

Over the last 70 years in Australia, residential property (on average) has doubled in value about every 7-8 years. This can be verified at the Real Estate Institute of Australia website http://www.reia.com.au.

There is no reason to believe that this will change trend will change anytime soon.

There are ups and downs with any investment market, property is no different. Long term though, property always does well.

The reason is a little clearer if we peak behind the veil. Remember it is not only the value of assets like property increasing over time. Property also serves as a strong hedge against inflation.

Inflation, in effect reduces the spending power of your money, it devalues it. Property, Real Estate can help prevent this.

The power of investing in property comes chiefly from OPM, Other Peoples Money.

This OPM gives you the ability to leverage and therefore multiply your return on your investment dollar.

The reason you can do this is that the people with the money, the Banks, love real estate. They love Property so much in fact that they are willing (with a little coaxing) to lend you 80% to 90% of its market value.

That said, if you have owned your own home for a number of years you can go one better than this and borrow 100% of the value of your investment property. This includes all the costs (stamp duty, loan fees, conveyancing…) of doing business.

This usually takes more than one lender to do. And it can be… tricky if you are new to this type of multi lender, multi loan finance structure. If your interested my next article will cover this in more detail .

Another thing I like about Property Investing is it is simple. In the words of Robert Kiyosaki “Property Investment is as Dumb as Dirt” – end quote.

I think he is right. When compared to learning how to understand stocks and shares, or becoming an eBay Millionaire, investing in property is very simple. And it can also be hands off too.

Over the next few weeks, I will try to answer the questions that I have been asked by clients investing in property.

I will outline how I structure Multiple Loans and Multiple Lenders when investing in property for the first time. And I will demonstrate how to borrow 100% of what you need to buy your first investment property while doing so.

From there we will go into how your investment will be funded into the future without keeping you broke.

We will go through the best way for you to find a bargain investment property in any kind of market. This is a must.

We will also discuss your business partners in your investment property, your tenants and your friends at the Australian Tax office.

Check back again soon

Jamie Wadley – HunterWide Home Loans

Please find below my simple Home Loan Calculator for you. Feel free to use it and come back as often as you like, with my compliments…

Use my home loan calculator below for your results

Knowing precisely what your home loan repayment will be is fundamental to realising (personally) whether you can afford the home loan you want or not – regardless of what any lender may think.

Using this (or any) home loan calculator should be the first “port of call” to anyone serious about home ownership. This is true regardless of whether you are a first time home owner or a seasoned property investor.

Just fill in all the fields on the home loan calculator screen below. Then hit the “Calculate” button for the home loan information you need.

The Home Loan Calculator, though quite simple to use is a very powerful tool.

You will be provided not only with my estimate of your monthly home loan repayment amount. You will discover the total cost of your home loan – from start to finish.  In addition you will be presented with a detailed graph and amortisation table providing a detailed snapshot of your home loans status, year by year until completely paid off.

Use the home loan calculator below as part of your home ownership toolkit

One word of warning, my Home Loan Calculator only shows how your home loan will be paid off using the standard repayment model – slowly.

If you are after information on how to use the most effective Rapid Mortgage Reduction strategy I know, you can contact me using the simple enquiry form below to find out more.

Remember, doing your homework is the key to owning a property. A good home loan calculator is a fundamental tool you should have in your kit to help ensure you make the right decisions when buying a home.

To your success.

Jamie

Hello, and welcome to the Property Investment Hub.

Australian Property Investment - It's a lot like Monopoly with real houses

Investing in Real Estate has been the back bone of almost every great fortune ever made.

Over 90% of well off people either made their fortunes or keep their wealth secure with the help of property investment and real estate assets.

Are you looking at investing in property for the first time? Or are you a seasoned Real Estate investor looking to expand your  property portfolio and sharpen your edge?

Either way, I hope you find all the information provided for you, here at the Property Investment Hub, to be helpful in you achieving your property investment goals.

My name is Jamie Wadley and my business is property finance and finding you the best investment property mortgage.

I’ve been helping people to invest in property in Australia for years (especially residential Real Estate), and have put together the Property Investment Hub to help you find the information you need to build a more secure future through investing in property.

That said, Property Investing is not as complicated as many pundits claim. This perceived difficulty (unfortunately) keeps many would be investors away from investing in property which in my opinion, in his country is a great shame.

There are certainly dos and don’ts to be aware of when investing in property, the same can be said about any type of investment strategy.

To quote the famous American Property investor Robert Kiyosaki when asked to about what advice he had for average investors, his answer was simple  – “Don’t be average”

Property Investment - Learn The Rules of the Game

What Robert means here is to be successful as a property investor (or any type of investor), do your homework.

Don’t guess your way to investing (this can be very expensive). Study your  subject, read books and property magazines, use website like this and most importantly make a plan.

After all investing is nothing more than a plan, and anyone who tells you anything different is probably trying to sell you something.

An investment plan regardless of whether it involves property investment or not, is merely a strategy which enables you to move from where you are today (financially), to where you want to be, 5, 10 or 20 years from now.

The good news is once you have learned an effective way to invest in property, you can replicate the process over and over again, as many times as you like.

How Would Your Financial Future Look if You Owned Every House in Your Street?

The information I will provide for you here at the Property Investment Hub is based on my experience in property finance and investment property mortgages, as well as the experience of some of the best property investment experts in Australia.

There are no magic formulas or get rich quick schemes hidden amongst these pages. In fact if you are looking for this type of information don’t waste your time by reading any further.

The kind of answers you seek may be elsewhere, and I wish you luck in finding them – you’ll need it.

The Property Investment Hub’s aim is to take some of the mystery out of investing in property. It’s about learning and applying certain dependable techniques that have worked for countless others for years.

As a disclaimer, no one can guarantee your success in any investment arena, and I am certainly not trying to claim that here.

What I can guarantee you, is that by investing your time and educating yourself about property investment. You will have a far better chance of achieving your financial goals, over anyone who has failed to take this time, and failed to develop a solid investment plan to secure their financial future.

If you have any questions about property investment, or how to structure your finances when investing in property, I am happy to help you all I can.

If there is something covered in this website (or not), that you would like to know more about, just let me know, I am here to help you. Use my quick enquiry form below and I will be in touch with you as soon as I can (usually with 24 hours).

Thanks for reading and let me take this opportunity to wish you the very best of success with your property investment goals, both now and into the future.

Kind Regards

Jamie
HunterWide Home Loans

If YOU have any questions about investing i property in Australia I will be happy to provide you with any help I can. Just fill in the form below, let me know what you would like more information about and I will either email you with a reply (in 24 hours or better) or call you if you prefer.

Let Me Know Your Most Important Property Investment Question..
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