Your Home is a Financial Investment

Whether you plan to live in it or rent it out, a home is probably the biggest purchase you'll even make. And it is also a sound long-term financial investment, if you buy wisely and protect your asset. Check our top five tips on investing in your home.

What should you look for?

For the most flexible property - somewhere you could live in at first, then rent out later if you want to upgrade - these two criteria are key:

Location: it's the one thing you can't change, although some aspects could improve over time; the neighbourhood, lifestyle, transport, schools and facilities.

Construction: is it well built, has it been damaged by termites, is it damp, and does it meet all council building requirements?

Lifestyle, or rate of return?

If you're buying a home to live in, it's easy to let emotional factors cloud your judgement. If you just want a sound return on your investment you may well choose something you'd never want to live in yourself - as long as a renter would.

Must-have reports

It's vital to check a building and pest inspection report on the condition of your home before you buy it. You wouldn't invest in a business without analysing the financials - and you will save yourself a lot of money and energy if you avoid bug-infested damp-rotten money pits.

Simple ways to keep disaster at bay

Now that you have found the ideal property, protect it from any potential problems by keeping on top of that maintenance. If it's an old house, check for faulty wiring - it may cost a bit to upgrade, but it's also a potential fire risk. Keep gutters clear of debris, and trim branches away from windows. You can also reduce your home insurance premium by adding low-cost security measures, like alarms and window grills.

Protect your biggest asset

Comprehensive home insurance is essential. If the worst possible scenario happened - the entire loss of the home in a fire, for example - you need to know you have enough money to rebuild to the quality level you expect, and cover all the extra costs. Make sure you're not under-insured, and protect your financial investment - and your home - for the future.