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Six steps to safe property investment

It is never easy to invest in the residential property market. There is a mountain of research and hard work to undertake to realise that goal. In particular, one needs to co-ordinate the process of selecting a quality asset with that of securing suitable lender funds.

Matters aren't helped by today's strong market conditions. Competition is fierce and demand is out-stripping supply.

In this one-hour webinar, Paul Nugent and Stuart Wemyss walked through tried-and-tested steps for success.

(If you are pressed for time, consider downloading our Six Step Guide to Investing.)

These include:

  1. Financing and home equity;
  2. Asset selection;
  3. Negotiation;
  4. Settlement
  5. Property management; and
  6. Portfolio review.

In the second half hour Paul and Stuart answered attendees questions.

Key moments

Issue covered Time stamp (min:sec)
Why Do People Fail to start Investing? 2:10
Step 1- Finance 3:38
Step 2- Asset Selection 8:13
Step 3- Negotiation 10:05
Step 4- Settlement 13:30
Step 5- Property Management 15:20
Step 6- Portfolio Review 17:56

Questions answered

No. Question Time stamp (min:sec)
1 Has any advice you would have given investors 10 years ago changed?  22:15
2 In terms of structuring the transactions, what are the ‘watch out’s’ in the use of equity such as your own home? 24:30
3 How do you find a good property manager and how do you manage them? 26:00
4

I’m 59 years of age, but no SMSF. I have been advised to set up a company to buy property with instead of SMSF and then a trust fund for that property, what do you say? It is supposed to be equally flexible and quicker and will isolate the property from litigation.

28:15
5 How do I go about ensuring highest possible valuation of my investment property? 30:40
6 Have the banks tightened up the laws on lending at all, if so how? 32:23
7 Please provide an opinion on Frankston market, will it take off? 34:28
8 How can I find a one stop strategist to help review my current investments, to maximise my potential and help me move forward? 36:32
9 Will you still see the same amount of growth over the next 10 years? 39:50
10 Regarding structuring of the loan, who do I approach or who is the key person to talk to? 42:55
11 How quickly would you drop a dud property? 44:02
12 Negative gearing it has been suggested should be scrapped, how would that effect the market? 47:05
13 Is it still feasible to invest in the Melbourne market and if so which suburbs? If there is an investment property available at $1m or two at $500k, should I buy one or two? 50:23
14 At which stage would you recommend a first time investor look to stop paying of a mortgage and invest in property? 54:04
15 How do you review the financial performance of the property without necessarily ordering an evaluation? 55:25