7 tips for getting started in property investment.

When it comes to building a retirement nest egg for the future, property is still regarded as one of the safest long-term investments.While some investors may want to buy a property and rent it out straight away, others may choose to live in the home while they renovate it. Investing in bricks and mortar can be a great way to create wealth, but there are some golden rules to consider before taking the plunge into property investment.

1. Know your budgetBefore investing in property it’s vital to have a thorough understanding of your cash flow. Also, ask your bank for a pre-approval of your investment loan, so you know how much you’re able to borrow before you start hunting for properties.

2. Don’t underestimate ongoing costsWhen you have purchased your ideal investment property do what you can to prevent costly maintenance issues arising.

3. Buy in a growth areaTry to choose an investment property in an area where there is strong demand for rental accommodation. Buying a property close to transport, universities and schools will make it more attractive to renters.

4. Be realistic about your investment goals

Are you looking for fast capital growth or wanting to hold the property long-term? During boom periods, it’s much easier to renovate properties and turn them over for a quick profit. In slower economic times, it may take many years to achieve the same growth.

5. Look for liveable not luxuryRemember a rental property only has to be clean and functional. Don’t get sucked into buying a property simply because it has a stylish interior.

6. Buy with your head not your heartWhen house hunting it’s very easy to get caught up in emotions. Be sure you weigh up the pros and cons.

7. Get a building inspectionBefore signing a purchase contract, take the time to understand the building report.