Buying your First Investment Property

A Guide for the most important things to remember before you pull the big trigger

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Photo by CMDR Shane on Unsplash

This article is about investment ownership — not live-in ownership

Buying a home for yourself to live in is certainly exciting.
I assume it’s a blast to knock holes in the walls and not have to worry about what the landlord will say. That’s what you love about it right?
I personally have no idea what it’s like to live in a house that I own. I bought both properties from a distance and didn’t see either of them in person until well after a year of ownership.

5 Things to consider before you buy

1. The cost of the house isn’t even close to what the house will actually cost

The first big money-grabber you’ve got to account for is the government.
Depending on what country and city you live in, you may have to pay tens of thousands of dollars in either stamp duty or capital gains tax.

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Photo by Peter Hammer on Unsplash

2. Lawyers or Conveyancers

In Australia, conveyancers are more commonly used for buying a property. For New Zealand, a lawyer is very nearly required by law.

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Photo by Hunters Race on Unsplash

3. Get The Blueprint

The blueprint of the house you’re buying is sacred. It’s a document that proves that no-one has broken the law by building anything that’s not suppose to be there.

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Bubbles Devere — Little Britain

4. Builders inspection & LIM report

So you or your paid representative have conducted an inspection.
Unless you’re a trained builder, you’re not qualified to find the termite rot or the baby sinkhole thats going to destroy your investment in 5 years time.

5. Rates

One factor I‘m always lazy about is properly factoring council rates into my positive/negative gearing calculations.

Finishing up

You’re about to embark on one of the most exciting, yet tedious adventures of your life.

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Photo by Rowan Heuvel on Unsplash

Written by

I write articles that inform and delight from my anti-virus bunker in Shanghai, China. 🇦🇺 🇨🇳

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