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Question from Jiji updated on 30th July 2014:

I am planning to buy an investment property soon. Please tell me the basic stuff I need to know before I jump? I have decent equity in my first home. What are the pros and cons involved here?

Our expert Kris Pedersen responded:

Hi Jiji, start by figuring out what you want from an investment property or an overall investment portfolio. It is likely to be for retirement planning or similar but you need to start with exactly what you want so you can then understand what type of property or properties will best enable you to reach your goals. Make sure you look to establish a good team around you including a good accountant, lawyer, property manager (if applicable), mortgage broker, reputable valuer and building inspector. These people need to understand property investment. From there you can decide whether to purchase in your personal name or an entity and then set up your finances, get preapproved and start looking. Using a property finder can be a handy option so you can leverage your time better but still do your own due diligence on any possible purchases. Good luck with your investing. Thanks, Kris

Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies.

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