Here are some simple rules to follow, which should help you plan your investment and avoid making some common mistakes.

1. Consider your plans.

Before you buy an investment property consider your overall investment strategy and how property investment fits in to this strategy. If you don't have a financial plan or financial goals, try to set them before you buy. When setting goals think about what you want to achieve and in what time frame.

2. Understand the risks.

Make sure you understand the risks associated with buying investment property and ensure you are comfortable with those risks before you buy. It's no use investing if you're going to be lying awake at night worrying about it. Remember all investments move in cycles of higher or lower profitability.

3. Do your homework.

Find out as much as possible about the property and area you are considering investing in before you buy. If you are buying a second hand property it's also recommended that you have a thorough building and pest inspection carried out on the property.

4. Keep emotion out of it.

Remember, you are buying a house for someone else to live in.  You do not need to like it or even the neighbourhood - in fact, sometimes the best areas to invest in are not places we would want to live, ourselves. 

5. Get advice.

Before you invest decide whether or not you need professional advice. This might be your financial planner, accountant, real estate agent or other professionals.

6. Think about tax issues.

There are many tax issues associated with property and property investment, some of which you may not be aware of. It is recommended that you speak to a property tax professional before you sign on the dotted line.

7. Read everything.

Read everything you receive which is related to the property and keep all your paperwork in an orderly fashion. It's also a good idea to get into the habit of giving all your instructions in writing, whether it's to your solicitor, finance provider or property manager. That way you have an accurate record of your instructions which you can call upon in the event of a dispute arising.