How to Organise Personal Finances for an Investment Property

Investment properties are a great way to make money, but they can also be risky. However, if you take the time to plan and save for an investment property purchase, then it is almost guaranteed that you will find success. The first step is knowing what type of property you want to buy. Do you want something residential or commercial? Next, decide how much money you need for a deposit and create multiple income streams so that the down payment fund grows faster. Once your first goal has been accomplished, then move onto saving up for repairs and other hidden costs that come with owning an investment property!


If you are looking for a residential investment property, then it is important to compare the costs of an investment property against your primary residence. For example, does the mortgage repayment on an investment property outweigh the rent that you would receive from tenants? If not, then it may be more beneficial to purchase a different type of property. Help can be offered by local experts e.g. if you live in Arizona search e.g. for experienced Phoenix property managers. However, if the numbers do work in your favour, then start researching which areas have high rental yields and look for properties in those neighbourhoods!


Commercial investment properties can also be a great way to make money, but they come with their own unique set of risks and rewards. For example, if you purchase a commercial building and lease out all of the office spaces, you will have a monthly income coming in. However, if the commercial property market takes a downturn, you may find yourself with an unoccupied building and no income. As with all investments, it is important to do your research before taking the plunge!

Know your finances and determine what you can afford

If you have decided that an investment property is right for you, then start saving up for a deposit! This can be done in a number of ways, however, using multiple income streams will help grow your fund faster. One option is to get a side hustle. There are many online platforms that make it easy to find odd jobs in your area of expertise. Another option is to use bonuses or tax refunds to jumpstart your savings account.


It is important to know your financial situation before diving into the investment property market. Are you comfortable taking on a new mortgage? Will you be able to afford the monthly repayments as well as other associated costs such as repairs and property management fees? Make sure that you are fully aware of all the risks involved in owning an investment property before making any commitments.


Comparison shopping is also a key step in the investment property purchasing process. Not only should you compare interest rates and loan terms, but you should also research what type of property will best suit your needs. Buying an investment property is not the same as buying your primary residence – make sure that you are aware of the differences before making any decisions. Using mortgage repayment calculators like this one here are crucial in the planning stages.


Saving for a deposit is one of the most important steps in the investment property purchasing process. Depending on your financial situation, you may be able to save up for a deposit in as little as 12 months. However, it is always best to give yourself plenty of time so that you don't rush into anything.

Consider how to maintain your personal finances while managing an investment property

Managing an investment property is a lot of work, and you will need to have some sort of income stream in place. Some owners choose to live on the premises while renting out other units - it just depends on your personal preferences! If you do not plan ahead by thinking about how much money you can afford for rent payments as well as repairs. Don't forget to budget for other associated costs before committing to an investment property purchase. An important factor in buying any type of real estate is the total cost. While you may be able to save up a hefty deposit, there are always additional expenses such as taxes and loan fees that will need to be taken into consideration. Some investors choose an interest only loan instead of a principal and interest loan because they can generally be cheaper.


Make sure that you do your research before buying an investment property. Even if the purchase price is lower than other properties in the area, it will still cost you money to maintain and manage - not to mention repairs! Once your finances have been planned out, then consider how much time you can dedicate towards managing tenants at the property. If you don't have the time or energy to manage everything yourself, then it may be best to seek out a professional property management company.

Get professional advice on tax, finance, and other legal issues related to investing in real estate 

It is important to note that not all investments are created equal. Some properties will be more profitable than others, and it may require a bit of trial and error in the beginning before you find your niche. If possible, try consulting with a real estate professional who can provide advice on how to run an investment property successfully!


They say knowledge is power, and with any type of real estate purchase it's important to arm yourself with as much information as possible. Real estate agents are a great place to start, but you can also consider consulting professionals such as finance advisers or tax consultants who may be able to shed some light on the legal aspects associated with owning an investment property.

Investing   Personal Finance