6 Steps To Prepare For Property Investing In 2024
Dilleen Property Group 2023
Are you looking to start property investing in 2024? It's an exciting and rewarding journey, but before you start, here is a checklist of a few key factors you should consider. In this blog post, we'll explore some fundamental aspects that will help shape your journey towards successful property investments.
Check Your Credit Score
One of the first steps on your investment journey is assessing your financial health. Start by checking your credit score. This three-digit number plays a crucial role in determining how much lenders are willing to offer. If you're unsure about your credit score, consider consulting a brokerage firm. They can run your numbers to provide insights into your borrowing capacity and help you set realistic goals.
2. Explore Financing Options:
Real estate financing has gradually evolved, offering more accessible avenues for potential investors. While traditional methods required hefty 10-20% deposits, some lenders now allow 5% deposits. Although this may come with lender’s mortgage insurance, it opens doors for individuals with a minimum investment of around 40-50K. You can speak with a mortgage broker if you’re interested in exploring these finance options.
3. Considering Outside-The-Box Strategies
Thinking outside the box can sometimes be the key to entering the market. If you're working with a tighter budget, explore the possibility of having a guarantor. A guarantor can help you bypass the need for a deposit, making homeownership more attainable. This method is especially appealing if you have less than 50K at your disposal.
4. Avoid Using First-Time Home Buyer Schemes:
If you're a first-time homebuyer, you might be intrigued by the idea of using First Home Buyer’s Schemes to speed up your property journey. These schemes offer a tempting package, requiring just a 5% deposit and providing exemptions from stamp duty. However, it's essential to know they're limited to new or off-the-plan properties, which often come with a higher price tag compared to existing homes. This means the rental yield for these pricier properties tends to be lower. Additionally, these schemes often require you to live in the property first, which can prevent investors from immediately receiving a rental income. While the stamp duty exemption may seem like a great perk, keep in mind that the overall cost of purchasing is higher, making the impact of the exemption less significant.
5. Act Now, Don’t Wait:
Many individuals postpone their investment plans, waiting for the "perfect" time. However, with various financing options available right now, there's no need to delay your investment journey. Whether you're considering waiting for tax returns or other financial milestones, you should still explore the opportunities that exist in the present.
6. Consult with Experts:
Feeling overwhelmed or uncertain about where to start? Reach out to professionals in the field. Brokers can provide personalised advice based on your unique circumstances, including family relationships, employment status, and financial goals. Don't hesitate to seek guidance and get the process in motion for a successful investment journey in 2024.
Conclusion:
In conclusion, the year 2024 holds significant potential for investors, and with the right strategies in place, you can shape a successful financial future. If you're eager to start your investment journey this year, take the first step today by consulting with experts who can guide you on this exciting journey. If you’re looking for experts to have a look at your finances for you, you can speak to our broker Justin Picker here. Furthermore, if you’re looking to build your own property portfolio, feel free to contact us here to learn more about our services and investment strategy.
Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.
