6 tips for women new to property investment

August 11, 2022

The property investment market – as Australian women, in general, it’s not something we tend to know enough about.

For you, it might be completely new, something that’s never crossed your mind. Or, maybe it’s intrigued you, but has just become an afterthought – after all, we’re always just feel too busy to do something new.

New things always tend to be scary, and without proper education or support, it makes it SO difficult to take the first step. We weren’t taught how to manage finance at school, or what to do when we wanted to invest money. As females, especially, there has never been any learning experience or wealth of knowledge to look toward. That’s what we’re here for – at InvestHer, we’re so excited to be able to share with you our passion and knowledge! At the end of the day, we want you to have the confidence and peace of mind to move forward and make the most of your finances, just like our educators and role models taught us!

Propell partnerships director, and head of InvestHer, Karen Lacheta-Pell credits her passion for property and investment to her mum, who was a real estate agent for over 20 years!

So, you can be sure that we’re here to help – we know you’re motivated to be financially independent for both yourself and your family – no matter your relationship circumstances. Let’s capitalise on that want to learn and that passion for growth together.

Whether you’re completely new to property investment, or just want to sharpen up on the basics, stick around, because these 6 tips will have you covered!

 

  1. Cash Flow


    Your cash flow is all about having a tight grip on your income and expenses. This doesn’t mean you have to be saving all your money towards a deposit, or budgeting in a strict way – it’s more about knowing what you can and can’t afford, and how it influences your buying.

    When looking at your income and position as an investor, your reliability of income is an important factor. A great way to address this is by making sure that you have a financial buffer, providing security and peace of mind in the event your financial circumstances change, like loss of job, or interest rate rises.

    Most of the time, when completing your pre-approval, your bank will factor in a buffer for this very reason. So, it might not be up to you to implement a buffer, but it is super important to keep it in mind throughout the process!


 

  1. Pre-approve your finance


    Everyone wants their journey as a property investor to be one of clear skies and smooth sailing – organising your finance early is a key to this!

    Pre-approval is a great option for anyone looking to buy property – investment or not. It means that your bank is happy to loan you a certain amount of money on a conditional basis. To obtain pre-approval for a loan, you don’t have to have found yourself a property – instead, it puts you in a great position to move things along quickly when you find your ideal property.

    Having a financial pre-approval is also handy because it gives you a clear idea of your budget when looking for properties.

    At the end of the day, it’s important to remember that your pre-approval is conditional, meaning it still needs to be confirmed with the lender before everything is set in stone (or ink!). That being said, you can feel safer knowing that the process is in action, and your finances are on track!


 

  1. Location, Location, Location!


    It’s one of the oldest and simplest sayings in property – but you’d be surprised how meaningful it is!

    Location is the most important factor when selecting a property. Keep your eye on towns, suburbs or regions that have high demand, and low supply of new houses. Another great thing to consider is the location’s economic factors, such as unemployment rates and migration patterns.

    At the end of the day, as much as it’s nice, it’s not about finding a place down a street that looks gorgeous, nor is it about buying an investment in a town that your ‘expert’ uncle purchased in – it’s about making sure your decisions align with your goals in the long term.


 

  1. Create Value


    When looking for the perfect investment property, another key factor to consider is the idea of creating equity.

    This means being able to add value to the property in a short period of time to help bring long-term stability to your portfolio. We generally see this in the form of new builds and renovations, bringing up the value of the property by adding to what was there before.


 

  1. Negotiate a low deposit.


    When organising your deposit and pre-approval with your lender, look for a lower deposit, especially when purchasing your first investment property.

    Typically, a deposit of around 10% is what you should be looking for.

    Why? Ultimately, it’s pretty simple, using a lower deposit will mean that you have less cash coming out of your hands to get the keys to your first investment. A lower deposit leaves money in the bank for your next purchase!


 

  1. Find yourself a strong support network


    Ultimately, like with anything, a strong performance hinges on having a strong network.

    Your team will help you through each and every stage of the property journey, from figuring out your financial position, to making sure any leaks are repaired.

    Here are some key people you may want to speak to throughout your property investment journey:

    • Property Advisor

    • Solicitor

    • Accountant

    • Financial Planner

Many hands make for light work, especially when they’re experts in their field!

Being new to property investment can make things feel a little daunting – it’s the same with anything – when we’re not familiar or knowledgeable, we tend to be hesitant.

But, at the end of the day, property investment is an amazing way to ensure financial security for you and your family moving forward. At InvestHer, we want you to have the confidence and understanding to make your own decisions – to be empowered and motivated to achieve your long-term financial and lifestyle goals!

Want to chat more about how we can help you build your financial freedom?

We’d love to hear from you – Give us a call on 0455 223 865 and ask to chat to the InvestHer team!

Enquiry Form