So you’ve decided to make an investment purchase in a bricks and mortar project. Whether it is a renovation project, under priced buy, upcoming growth area or a steady long-term investment, there are a few basic principles that you will want to keep in mind.

1. Consider your needs and have an investment plan – How long do you plan to hold onto the property? Are you looking to flip it quickly or make a rental income on it? Are you aiming to capitalise on the appreciation of the property? Each of these will drastically change your risk profile and what you should see as an acceptable purchase.

2. Research, Research, Research – You can’t skip this part! This part often goes hand in hand with planning and you need to research any potential candidates with your plan in mind. What are the historical and trending sales in the area? What are the key local amenities? Who would your target buyer or renter be? Are there any seasonal / local trade shortages? How are local rental prices trending? Are there any upcoming events or developments locally?

3. Get pre-approval for funds before starting looking at properties – Sometimes whether an offer is accepted or not can come down to how quickly the vendor can walk away from the deal, cash-in hand. You should take every opportunity to have your funding in place before you make an offer to give the vendor surety that you can deliver a quick purchase. Particularly important in distressed sales. Know how much you can afford to spend for each scenario that you come up with in your plan.

4. Get an accurate estimate of costs – Nothing makes a deal become suddenly unprofitable like failing to be across the potential costs in renovating the property. A thorough pre-inspection, and a Quantity Surveyor and trade contractors on your team are invaluable assets to furnish yourself with an accurate cost estimate before you fully commit. Manage your trades diligently to minimise over runs and be aware of potential delays and the costs they might bring.

5. Be Patient – Last and by no means least, always keep in mind that a great investment often means sticking to your plan. Much like a trader, your success is made or lost when you lock in that purchase. So keeping to your (hopefully by this time) well thought out plan will be essential to ensure that you are locking in some key profits in line with your expected timeline.