Speak to any good property investor and they’ll always tell you they had a plan in place. Their investment plan ensured they took their time to research the market, crunch the numbers, set themselves goals and set themselves up for success.  Start by thinking about why you’re getting started in property investment. Is it to retire early, earn additional income from rent, or perhaps you would like to sell down the track and make a profit from the capital gains? Understanding why you’re getting into property investment will help you make informed decisions about the type and number of properties you should buy.

Once you know what you want to achieve, the next step is doing your homework to work out the best way to get there. This means looking at where you want to buy and whether you want to build new or buy established. Of course, there are benefits to both, but with a new home there’s likely to be less maintenance, better depreciation benefits and a structural warranty.

While by no means an exhaustive list, here’s a few things to consider when you’re looking at where to buy:

Growth suburbs: Don’t always dismiss the up-and-comers! New transport links, education or amenity in the pipeline, can be a good sign for capital gains.

Low vacancy rates: High vacancy rates may make it harder to find a tenant and be a signifier of a less desirable area.

Rental yield: Very simply put, this is how much cash your property will produce every year as a percentage of the property’s value. A low rental yield isn’t always a bad thing, especially if you’re after capital growth, but a high rental yield can help with short-term cashflow.