Buying an investment property is still an extremely popular way for Australians to invest in their futures. An investment property should mainly be about providing the buyer with a sense of financial security. However, many people are under the impression that purchasing investment properties will always provide them with positive returns. While this is mostly true, it is still necessary for buyers to exercise the necessary level of caution to protect this investment. Take a look at the tips below to help you with your property investment adventure.
1. Purchase the Correct Property at the Correct Price
Making an investment in property is mainly about capital growth. As a result, it’s essential to select properties that will most likely increase in value as time goes on. One way to tell if a property is going to be a good investment or not is to see how much other properties in the surrounding areas have sold for in recent years. This will allow you to hop on a genuine bargain if it comes along. Don’t feel pressured into buying a property in a suburb that you aren’t familiar with, no matter how good of a ‘deal’ it appears to be.
2. Familiarise yourself with the Market you want to Buy Into
Always inspect other properties in the surrounding area where you are thinking about buying, and also ensure that you chat with any many locals and property agents as possible. Most of the time, they will be willing to inform you whether a specific section of an area is better or worse than the rest. It’s also a good idea to obtain access to independent information from sources such as RP Data, because this will give you information regarding average property prices, rental rates, and general area reports and sometimes also demographics of the suburb you’d like to buy property in.
3. Have the Property Thoroughly Inspected
Regardless of whether you purchase a property at a so-called bargain price or not, the expense involved with replacing a roof or hot water system will negatively affect your overall profits and cash flow. This is why it’s necessary to obtain assistance from an experienced and qualified building inspector to check all aspects of the property before signing the purchase paperwork. While it may be possible to get a bargain if a home needs some repair work to be done, this should only be performed by qualified, licensed and knowledgeable tradespeople.
4. Improve the Property to make it Appealing to Potential Renters
Before advertising your rental property to potential tenants, it’s a good idea to make sure fixtures are modern and in good working order and that the property looks aesthetically pleasing overall. Some fresh paint and a professional cleaning job will also help ensure that you attract decent tenants. When doing repairs and upgrades to your rental property, it’s essential that you ask yourself if you’d be happy living in the home if it was in its current condition.
If you are interested in finding out more about scheduling a termite or pre-purchase inspection before purchasing a property, contact our team to arrange one today.
