If you’re interested in purchasing an investment property, it can be hard to know where to start. Here are seven tips to help get the ball rolling:
Make a plan and stick to it
The property itself isn’t the end goal, you’re likely looking to make a profit. Once you know your end goal, create a plan for a realistic time-frame. Remember to review this plan regularly as your situation and the property market changes.
Research the investment property market
Do your research to see what types of properties are easily attracting tenants and what properties are staying on the market for longer periods of time. This will help you choose the right property to purchase.
Pick your location carefully
Location is critical to performance. Consider the proximity of the investment property to the CBD, schools and local shops. It’s also a good idea to find out what the public transport options are.
Know your budget
Always check your financials before deciding to purchase a property. Get pre-approval and make sure you have all extra costs available, including conveyancing, inspections and any taxes.
Think about how you purchase the property
When setting up the sale contract for your investment property purchase, consider whose name to put the house under. Whether it’s in your own name, through your super or a family trust, it’s important to understand how this investment affects any existing assets.
Think about what tenants are looking for
Look for properties that offer that little something extra, like a second bathroom or a lock-up garage – anything that might appeal to potential tenants looking for a home of their own.
Ask for expert advice
Your mortgage broker can put you in touch with accountants, real estate agents, lawyers and valuers – experts that can help guide you in your decision making.