Dipping your toe into the world of property investment can seem rather daunting for novices but it need not be if you seek the professional assistance of a qualified accountant.
We have been assisting investment property owners reach their goals of owning an investment property or two or three, with our many years of accounting expertise to ensure they maximise the advantages of owing rental property. Here, we share some tips for buying your first investment property to help you build your property porfolio.
Talk to an accountant
Before you run off and sign a contract on what you might think will be the deal of the century, talk to an accountant. Accountants, particularly those versant in property and development matters, have a wealth of knowledge covering areas of rental returns, gearing, depreciation, deductions, capital gains and taxation.
It will pay off in the long run to seek the initial advice of accountant to ensure any property you buy will ultimately be the right one.
Talk to your lender
Usually when you a buy an investment property there will be a mortgage involved. Having a discussion with your lender can help set some parameters as to the price of the property you can afford and help you determine what your out of pocket expenses will be to hold an investment property.
Source the right property
After you consult your accountant, be sure you do plenty of research to ensure you buy the right property for your situation. Achieving capital growth and holding property is the end game, so you must buy wisely at the start.
Determine whether buying a house or unit is the best type of investment for your circumstances. Choose a location that you are familiar with for your first investment with good local facilities and know which demographic your investment property will appeal to.
Find a reputable property manager
Dealing with tenants can be fraught with danger if you don’t know what you’re doing. Rental tenancy authorities have a myriad of rules and regulations landlords need to be aware of as tenants have rights.
For a first property investment, it can be a wise idea to have a professional property manager manage the tenants and your property for you. Investing in property can be hugely rewarding for those who are well researched and well informed and can help set up your financial future.
If you are looking for an accounting firm you can trust with your first investment property, don’t leave it any longer – call Opulent Accountants today. We will ensure you get the most out of your investment property with deductions, depreciation, accounting and tax reporting.
