OPENING DOORS TO PROPERTY INVESTMENT
Our team has a wealth of knowledge when it comes to investing in real estate. If you're thinking of investing, here are some tips to help get you started.
Buying an investment property
<p data-block-key="nvm1c">Since not all investment properties are the same, it’s essential to determine what type of property fits your requirements.</p><p data-block-key="baheg">Do you want to become a Residential Rental Provider (RRP), or would you rather restore and resell properties? Are you interested in apartment buildings and other commercial real estate, or in buying land that can be developed?</p><p data-block-key="9i4rr">First-time investors should speak to a real estate agent who is experienced in investment property deals and can help locate promising properties. A second option is collaborating with a trusted, more experienced real estate investor and closing a deal together.</p>
TOP TIPS FOR PROPERTY INVESTORS
Buy Without Emotion
Buying an investment property is different to buying your primary residence. When you buy your own home, you usually have emotions in it, when you buy an investment property – you need to put all that aside and look at it as a business transaction – What’s the best option that will get you the best return?
Location, Location, Location!
Location is the key if you buy a property with hopes of renting it out. Homes in areas with a low rental vacancy rate or highly populated areas are ideal; stay away from areas with fewer people and a small pool of potential renters.
Secure Your Investment
Consider if you have enough assets to handle the ups and downs that could come with investing. Even if you plan to rent out the property, count on paying the mortgage whenever the property is vacant. If you’re planning to fix up a home and sell it, you could end up holding onto it for several months before you sell.
Purchase at the Right Price
Research other similar property sales in the area, to ensure you are not paying a premium for the property. You can use the suburb profiles and sales results pages on this website to look up recent sales and median prices.
Opt For Low Maintenance
If you intend to rent it out, choose a low-maintenance property that will be easy to maintain. Ensure it’s well-built and free from building defects.
Consider Depreciation
Talk to your financial planner about other ways you can potentially save, for example, depreciation on certain items in a rental property.
HERE TO HELP YOU MAKE THOSE BIG DECISIONS
FINANCIAL SERVICES FOR INVESTORS
An investment property should assist you in reaching your long-term financial goals. We recommend speaking to a qualified Financial Planner who can advise you on the best strategy for you. Barry Plant recommends the team at Inovayt Finance, who can help you determine the strength of your borrowing capacity by completing a pre-assessment that evaluates your current financial circumstances and the correct type of loan to suit your property investment strategy.