DEPRECIATION

Successful wealth creation through real estate requires you to set goals, determining where you want to end up, and then devising a cohesive plan to get there.

You need to focus on both the short and long term and ensure your investment decisions gel with your overall strategy. Work out what you want to achieve with regards to income – are you chasing short-term yields or long-term capital growth – and how you can best manage your cash flow as a smart investor.

What type of property do you need to buy in order to meet your income goals? With a carefully thought through outline of your investment journey, you will end up exactly where you want to be. FIRST TIME INVESTOR GUIDE to off-the-plan property in NSW

3. EXPENSES

Once you have a property in mind, work out your income and expenses. Think about the income you expect to get from it and what your regular expenses will be. Can you cover all if a sudden shortfall occurs?

Buying, selling and managing an investment property can be costly and will affect your overall return. Will you handle your growing portfolio or pay a professional property manager?

Property costs when buying can include stamp duty, conveyancing fees, legal costs, search fees, pest and building reports.

Costs of owning a property can include: council rates, water rates, insurance, body corporate fees, land tax, repairs and maintenance costs plus property management fees.

Make sure you chew the fat before you make a rash decision.