Contrary to the image a property investor might conjure up — a wealthy full-time property speculator — most residential investors in Australia don’t actually rely on it as their primary source of income, says Maria Yanotti, a lecturer of economics and finance at the Tasmanian School of Business and Economics at the University of Tasmania.

In her article, Who is the Australian property market’s typical investor?, on the ABC website*, she says research shows the main reasons for accessing finance to buy a house, other than to live in it, are income and wealth accumulation.

Her research backs up what we see – most people have a day job, but are buying an investment property to help them achieve their long-term financial goals.

Property investment is achievable for many people however many don’t enter into it because they are not too sure how to go about doing it.

If you’re thinking about your long-term financial goals, investing in property can help you get there.

Here are some tips to help you work towards purchasing your first property investment:

Pay down your debts

The less debt you have, the better it is when you apply for an investment loan. Quite simply, the less you owe, the more you can borrow! Try to pay down credit card debt, personal loans, and/or your home loan (remember your home can be used as equity for you to borrow against). And look at other ways to reduce your debt; if you have a large credit card debt, it might be worth clearing the debt by adding it to your home loan or personal loan which has got better rates of interest.

Speak to a financial advisor to find out what’s best for you.

Save for the deposit

Look at where you spend your money. Can you do without a morning coffee and take-away lunch every day? Do you really need to pay for that excessive amount of data for your phone or for 100 TV channels? When you actually look at where you spend your money, you’ll be surprised at where you can save yourself some dollars.

Keep the money coming in

Lenders like to see a strong income and stable employment. It’s not impossible to get a mortgage if you’re self-employed or a contractor, but it’s a lot easier to get a mortgage, and you’ll have a better choice of providers, if you’re employed.

Do your homework

While you’re paying down your debts and saving for a deposit, take the time to learn about investing in property. Look at what costs you need to factor in when buying an investment property, research areas and keep an eye on the property market. Also, speak to a financial advisor to find out what you can borrow or what you’ll need to get yourself into a position where you can borrow.

Think like a businessperson

Property investment is a business even with just one property. You need to have a critical eye when you’re considering potential properties – you’re not going to live there, your tenant is, and for them, the main criteria are going to be things like access to amenities and public transport.

Be patient

Finally, don’t rush things. It may take you a couple of years to get yourself financially in a position to get your first investment property, but by then, you’ll understand the process. And the wait will be worth it; once you have your foot on the ladder, who knows where it will take you!

We’ve helped hundreds of people realise their financial goals through property investment and we’d love to help you too! Take advantage of our 40 years’ of experience in the area by coming into the Cardiff office or calling 4954 9777.

For more investor and property management tips check out our Facebook page: www.facebook.com/NewcastlePropertyManagement

*To read the ABC article – http://www.abc.net.au/news/2017-08-01/who-is-the-typical-investor-in-the-australian-property-market/8764504