Many of us have a desire to invest in property as a way to create wealth and secure our future.

In Australia particularly, property often increases in value faster than other investments and is believed to be a less risky option, so it makes sense that this is so high on our radar and goal list.

So where do you start?

The first place that we always recommend is to talk to a financial planner so you can discuss your plans, dreams, current financial situation plus anything that could affect both your short and long term situation. Together you can create a tailored investing strategy that covers:

* budget
* timeframe
* tax position (this will help you decide if you’re better off buying new or existing property)
* desired cashflow from the property

From there, you need to decide on location and property type. Remember, local isn’t always best when looking for an investment property. As opposed to buying a home to live in, this decision is about numbers rather than emotions.

We also recommend that you talk to a property investing consultant to get expert opinion and access to properties that sometimes aren’t yet released to the public.

Things to look for:

* Location – rental demand, rental vacancy rates, capital growth rates, employment rates, infrastructure investment, future development plans (ie gentrification or building a highway), demographics, access to local amenities that suit the demographics.
* Property – does it match the demographics of the people living in the area so that it would be a desirable property to rent? For new properties, who is the developer and are they reputable? For existing properties, what is the condition of the property?
* Price and cashflow – can you service the loan, cope with any periods of vacancy and any required repairs or maintenance?

Finally you need to speak with a good mortgage broker to arrange finance and help with structuring the loan to match your financial position.

Investing in property is a huge achievement, but you need to make sure you go in with eyes wide open.

Let me know if you need any recommendations or help with finance.