Key Steps to YOUR Property Success
It’s time to take action. Here are 15 Steps to get you started towards Property Success.
1. Where are you now
Take a realistic look at your financial position today…
- What assets do you have?
- How much do you owe?
- How much do you spend?
- Do you have any money left over to invest?
2. Where do you want to be
Write down where you’d like to be financially in 1, 5 and 10 years.
(You need to plan for your property success)
3. Pick a Strategy
You need to work out what Property Investment strategy suits you best.
- Do you like to renovate?
- Do you need cash flow?
- Does developing or subdividing properties appeal to you?
There are many different strategies so you will need to pick one that suits your personality and budget.
The strategy you choose will determine the type of properties you will be searching for. It would be impossible to look at every piece of real estate on the market so picking a strategy will help you narrow down your search and also help you communicate what you are looking for to real estate agents and prospective vendors.
It is then important that you stick to and focus on your strategy.
4. Create a Plan of Action
Without a plan you will not go anywhere.
Write down what you want to achieve and how you plan to achieve it and by when…be specific.
(Action will lead to your property success)
5. Finding the Properties
Not only will you need to do some research to work out the areas you need to be searching for your property, but it is also important that you think about attracting the properties you seek creatively;
- consider advertising in local papers
- community notice boards
- use flyers
- give the real estate agents in the area a good outline of the type of property you are looking for
- have the type of property on a back of a business card and perhaps offer a financial incentive to anyone who finds you a deal (and hand these out to everyone you meet in the area).
6. Network with like-minded women
Surrounding yourself with like-minded property women is an important part of your property investment journey.
There are several reasons to network with as many property investors as you can. They can act as information sources; provide inspiration; and assist you in finding deals. You might even consider going into a joint venture with someone who shares your vision.
Other property investors are easy to find if you look in the right places; obviously you’ll meet them at property investment workshops, and other Property Women events. You can also find them by going on-line and logging on to property forums. Facebook can be an option too, for example www.facebook.com/Propertywomen. It’s worthwhile attending any networking events for property investing in your area. You might even like to think about organising your own networking events by placing ads in the paper or on-line.
Visit www.propertywomen.com.au to find out about upcoming networking events we will be having in your area.
(Networking with like-minded women increases your changes of staying focussed and motivated which leads to your property success)
7. Find your Finance
The first thing you need to do is get your finances in order by getting any bad debt under control. It’s a good idea to add a mortgage broker to your investment team and establish your borrowing capacity:
- What is your available equity?
- How much can you borrow?
- What value property can you buy?
(the right loan increases your changes of your property success)
8. Assemble your team
Start by getting referrals from others through your network and check out our Little Pink Book online services directory :
- Find a Property Wise Accountant
- Find a Property Savvy Lawyer
- Take the time to find a good Property Manager
- Do you need a Quantity Surveyor
- Need a Trade or Service provider in the area
(a Good team equals property success)
- Choose an area to begin your research (this will depend largely on the strategy you choose, your suburb could be a good start).
- Look in newspapers, Real Estate Agents, look online (www.realestate.com.au, www.domain.com.au or www.realestate.co.nz), you may even consider using a property finder / buyer’s agent.
- Go to lots of Open for Inspections and Auctions.
- Residex (www.residex.com.au) and RPData (www.rpdata.net.au) and PriceFinder (www.pricefinder.com.au)
- Find reports on history of the property, comparable sales, median price.
- Check their websites for sample reports.
- Read property investor magazines.
- Both the Australian and New Zealand Property Investor Magazines list sales and rental returns in the back of the book.
- Visit the Real Estate Institute websites to find out (www.reiaustralia.com.au or www.reinz.org.nz):
- Market trends
- Market news
- What to look for:
- Is it a good or bad street/suburb
- Do not overlook up and coming suburbs.
- Are surrounding houses well cared for?
- Proximity to shops, schools, cafe’s
- Proximity to roads and railway/buses, hospitals
- Type of property
- House, townhouse, unit, block of units development site
- Property rating guide
- Follow the guidelines in the Property Rating Guide (www.renos.com.au/bookreports/rating/)
- Rental Return
- Property with a twist
- Can you turn a 2 bedroom house into a 3 bedroom house
- Can you divide it into flats?
- Can you turn the garage into a bedsit?
- Can you subdivide the block / section?
- Is it zoned for development?
- How can you add value?
- The absolute cheapest and quickest way to add value
- Choose neutral colours
- Revamp the kitchen and bathroom
- It’s not always necessary to replace them
- Replace the carpet if old and worn
- Clean up the yard
- Build a new fence
- Find bargain suppliers (consider Auctions)
- Find good reliable tradespeople
- Word of mouth and http://www.propertywomen.com.au/property-pink-pages/directory/
- Find a good one and then ask if he has contact with other trades (Use or add to our little pink book of recommended trades in Australia and New Zealand (www.propertywomen.com.au)
10. Make Offers
- Make low offers- what have you got to lose?
- Perhaps even between 10%-30% below asking price
- Always buy at less than market value (which isn’t always the asking price!)
- Be aware that sometimes the asking price is good value
11. Do your due diligence
- Have an escape clause in place
- Check it with your lawyer
- Building/pest inspection
- Is the building structurally sound
- Problems and Pests can make you money
- Ask for a discount for you to correct any problems
12. Add value
- Plan your renovation during the contract period so that it can begin shortly after settlement.
- Cosmetic Makeover
- Budget your time
- Allow 4 weeks for your renovation (time is money)
- Follow a strict budget – you are not living in this house
- Spend no more than 5% – 10% of the cost of the house on renovations
- E.g. $200 000 house – $10 000 to $20 000 on renos (maximum)
- If your reno is more than 10% then change your plan
13. Find good tenants
- Thoroughly check out potential tenants
- Can they pay?
- Will they look after the house
- Check out their references
- Or find a good property manager
14. Put your equityto work!
- Revalue the Property
- Talk to your mortgage broker
- Then do it all again
- Build a multiple property portfolio over time
15. The secret to ongoing success
- Continue to educate yourself
- Mix with like-minded people
- Where are you now
- Where do you want to be
- Pick a Strategy
- Make an Action Plan
- Find Properties
- Your Team
- Offers (buying)
- Due diligence
- Add Value
- Property Management
- Revalue/Refinance/Buy More
- Education (www.propertywomen.com.au)
Get started today!
This is the getting started phase. Steps 1 to 11 could be completed within 90 days.
Stage 1 will form the base for steps 12 to 15. You have researched, made offers and secured your property. You can now add value quickly. You can then rent it, revalue it and refinance it so you can do it all again and again. You are then on your way to reaching your financial goals.
If you’re committed to starting out or continuing your property education, check out the resources we have available to help you : www.propertywomen.com.au
Wishing your all the property success you dream of.