So you're ready to buy your first investment property. This is a very exciting time for you, however it can also be somewhat nerve wrecking at the same time. Here are some great tips that have worked for me and may help you become better prepared when it comes time to make that first investment property purchase:

1. Do have your finance pre-approved that way you already know your budget, it will also give you better buying power when you go to negotiate on a purchase too (talk to a good mortgage broker).

2. Do your numbers. Make sure that you calculate income and expenses. For example, what is the expected rent per week (get an up to date appraisal from a Property Manager) What are the Property Managers fees, what are the repayments on the loan (find out about interest only or principle and interest, what is the difference and why choose one over the other), what are the additional costs for insurance, compliance, stamp duty etc. Will there be a profit or a loss? What will be the tax deductions (if any) will this make the investment profitable or even viable?

3. Do not get emotionally involved. Look at the facts, look at the figures.

4. Look for a low maintenance, newer or renovated property. Unless you are willing to try your hand at renovating and are equipped with the knowledge and tools to do so I’d steer clear of old properties. Also make sure you have a great building and pest inspector ready to check over your property before you commit.

5. What is the demand like in the area for rental properties (look at the rental market, what’s on the market, what are they renting for, how quickly are the properties being rented).

6. What is the infrastructure like in the area you are planning to buy in, are there any future plans? Has the area got good transport, schools, shops and amenities?

These are just a few simple tips to help you on your way. Advice and information is provided in good faith, however the advantages of your property investment should always be maximised by seeking formal advice on your specific financial and tax position through your own professional advisors prior to investing.