BUYING AN INVESTMENT PROPERTY
Buying an investment property in Australia is still very popular. However, like all forms of investment you will find yourself:
- Having to make informed decisions; and
- Trying to absorb loads of information
If you are a first-time property investor or an established property investor you should find the information outlined in our website to be useful, particularly when you are shopping around for the most suitable investment property that will best meet your individual needs and financial circumstances.
Always do your Research!
Don't rush into anything too quickly and remember - always do your research!
Your research should include:
# 1- Researching Existing or Planned Infrastructure
You will find tenants will be more readily attracted to your investment property if they know that infrastructure is already in place or if the infrastructure is being planned.
# 2 – Researching Availability of Transport Options for your Tenants
You will find the majority of tenants want to be close to available transport options and that your investment property will be more appealing to them if they know that the following transport options are available to them:
- Train lines;
- Major arterial roads;
- Freeway access;
- Cycle paths;
- Footpaths and so on.
# 3 – Researching Availability of Rental Properties in the Area you are looking at:
It is important to look at suburbs and locations where there is a high demand for rental properties as this will offer you with good opportunities and it will also decrease the likelihood of your investment property sitting vacant for any length of time.
# 4 – Researching Property Prices
Look at suburbs and locations where there is evidence of a consistent and steady increase in property prices and try to avoid areas that have suffered from plummeting price drops.
# 5 – Researching whether to Buy a New or Established Investment Property
You should carefully consider weighing up the benefits of buying a new investment property versus buying an established investment property as you may find that there are considerable * tax benefits and advantages in buying a new investment property.
# 6- Researching the Demographic Breakdown in the Area
If you ever decide to resell your investment property at a later date, then you should choose a location where your property could have an improved chance for resale. So when looking at a suburb or location you should choose a neighbourhood that is welcoming and you should also do your research on the following demographics of the area:
- The number of owner occupiers in the area;
- The number of property investors in the area;
- The overall presentation of the area you are looking at and the surrounding areas; and
- Evidence of any public housing in the area you are looking at.
#7 – Comparing the Market Average of similar Homes in the Area
It is always a good idea to compare the price of your investment property to other similar homes in the area as this will evidence that your investment property is accurately priced.
# 8 – Catering for Families
Families are generally considered to be stable tenants so you should look at suburbs and locations that attract and cater well for families.
# 9 – Potential for Capital Growth and Rental Yield
When evaluating the financial benefits of your investment property, make sure the property is strong in the following areas:
- The potential for capital growth; and
- The potential for a high rental yield.
# 10 – Investment Property Home Loans
If you looking at funding your investment property by seeking finance, it is wise to get your finance right before you commence your investment journey. You can do this by getting an investment property home loan.
Seek Expert and Professional Advice
If you want to be a successful property investor, then it pays to have a team of professionals on your side who, can advise you along the way and help you to avoid making any costly decisions. This team could include a professionally qualified finance broker, real estate agent and/or property manager, solicitor, tax professional and/or accountant.
Singh Finance is a reputed Australian finance brokerage firm. We employ a team of expert and professionally qualified finance brokers. Their team of finance brokers will guide you through the process requirements and they will even obtain a pre-approved investment property home loan for you as well as find suitable landlords insurance for your investment property.
Contact Us Today
For an obligation-free assessment, call on 0424 190 908 today or visit our website and simply click on the “ENQUIRE ONLINE” form.
Disclaimer: This article is of a general nature only and does not constitute professional advice. I strongly recommend that you seek your own professional legal and accounting advice in relation to your particular circumstances.