Sean Niven’s advice to anyone buying Australian Property for investment purposes whether Australian or a Foreigner is to do the following:
- List down the reasons you are buying and what you are expecting to achieve in terms of returns
- Ensure you look at investing for a minimum of 7 to 10 years
- Decide how much capital you wish to invest
- Decide how much debt or leveraging you are comfortable with including how much currency risk you are prepared to take if applicable
With this information you can then prepare finance and cash flow spreadsheets that you can fine-tune until you are comfortable. Sean suggests a capital growth annual increase of between 4 to 5% and an annual rental increase of between 5 to 6%. After you are happy with the financial outcome he suggests to go about your education process and learn as much as you can. Once you are comfortable you have a good understanding, then find an Agent you can trust who has access to all different types of properties and only then start to look at the properties that meet your investment strategy.
Sean Niven confirmed that all to often he sees Clients go about the process the reverse way, usually being sold a property by an Agent for one reason or another, then starting the education process and lastly finding out how to finance the property. Often the client is unhappy with their experience and it is nearly always due to the process they have adopted. Sean believes it is very important to work with your advisor to find the best strategy and structure suitable to your best interests. Once this is agreed you can then work with your advisor on the education process until you feel comfortable that you have enough knowledge and confidence to select your property/s.
Sean conducts seminars on a regular basis to educate investors on the Australian Property Market so please keep an eye out on the APP Website (www.approperty.org) and register your interest. Alternatively, if you prefer a more personal approach you can contact him directly.
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