Cush for Comment – 7th of September

A friend asked me recently about a property and whether it would be a
good investment.
I asked them what sort of yield they were chasing.
They didn’t know.
I asked them why they were buying it and they replied: “I thought it would
be a good investment”.
I continued, “how long do you want to own it?
After expenses, including repayments, do you want to make money or are
you happy to run at a loss? Why do you think this property will go up in
value?” They didn’t really know why or whether they could afford it.

This is surprisingly the position of most first-time residential investors.
Anyone looking to get into the property market should have a strategy.
So many people buy investment properties without a well thought out plan.
I recommend speaking with three experts.
An independent loan broker, an accountant and if you’ve got one, a trusted
real estate or buyers agent.

This will tell you how much you can borrow, how much you can genuinely
afford and what parts of the market are moving. An example of a strategy
would be if you purchased a unit over eight years ago.
You should be taking a position on its value, and considering what you
would do with the capital gain if you sold.
Units are hot and they will remain in short supply for a few more years to
come.
So off-loading your investment unit could be an excellent strategy for
those looking to reduce or pay off their home loan debt.