PHOTO: Lloyd Edge (pictured) was a freelancer on a $51,000 salary when he paid a 10 per cent deposit on his first home in Sydney
A former music teacher who purchased his first house at 29 on a $51,000 salary and amassed a multimillion-dollar property portfolio has shared his golden rules for real estate investing.
Lloyd Edge, buyer’s agent and author of Positively Geared, said investing during unstable periods can be risky and daunting but can also be very profitable if done right.
Mr Edge said investors tend to make rash decisions when the market is turbulent but his five rules can provide a consistent foundation buyers can rely on to make smart investments.
The first step before diving into a property purchase is to secure finance and Mr Edge recommends consulting a mortgage broker.
They will assess your financial position, explain how banks view this, explain the different types of interest rates, and suggest what loans are going to suit your goals and strategy,’ Mr Edge said.
He explained a broker will also give you a list of the best banks that fit your needs and advise you of changes you should make before handing in your application
WE DON’T ROAST OUR BEANS UNTIL WE HAVE YOUR ORDER
FIVE GOLDEN RULES FOR PROPERTY INVESTING
1. Secure good finance: Mr Edge recommends speaking to a mortgage broker who can tailor your loan options.
2. Know the exact costs: Along with stamp duty and conveyancing there are often hidden charges like strata and document fees. And be sure to have a savings buffer for unexpected costs.
3. Understand the location: A strong local economy, quiet roads, nearby amenities and transport will make a difference to resale value.
4. Buy where there is room for development: A growing area with private and public infrastructure being built will increase demand.
5. Follow the leader, not the herd: Experienced investors with proven track records will usually be ahead of the crowd. Following them will get you into an area before it is saturated.
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