Investing in property can be incredibly rewarding. It’s a fundamental part of the wealth profile of many Australians. Once you’ve decided to become an investor, you need to ask yourself a number of questions and conduct thorough investigations.
Read, Research, and Know the Rental Markets
There’s a wealth of material on smart property investing available, so get inspired and committed to the idea. Numerous theories exist on what and how to invest, with “where” being one of the most significant factors. Capital growth and rental yield are crucial success indicators. You’ll need to understand the prospects for both of these factors in your chosen property market.
Key Questions to Consider:
- Which type of property should you buy: house or apartment?
- Will it be a brand new property or an established home? Should you be looking at property in the city, suburbs, or a regional town?
- Where’s the next big region?
- Should you focus on capital growth or rental yield?
- Is “the worst house in the best street” the best plan?
- Could renovating generate equity?
- Would buying off the plan be worthwhile due to stamp duty savings, depreciation benefits, and lack of maintenance?
- Should the property be near your place of residence so you can check on it and be familiar with market movements?
- Should you research population and industry growth projections and base your decision on future opportunity?
When considering any investment property, research these key attributes:
- Capital Growth: Analyze the local market’s past performance and future predictions.
- Realistic Rates: Factor in council rates, strata fees, water costs, and other expenses that affect your yield.
- Rental Yield: Determine what similar properties are renting for and the current vacancy rate.
- Wow Factors: Assess the views and unique extras of the property.
- Potential: Consider if you can improve, expand, subdivide, or add rooms to the property.
- Location: Evaluate the property’s surroundings, such as nearby transport, schools, and noise levels.
- Scarcity: Unique and historically significant properties, like Art Deco or Victorian styles, tend to appreciate in value.
- Features: Look for desirable features such as parking in busy suburbs, outdoor entertaining areas, and other amenities.
- Demand: Check for low rental vacancy rates and favorable industry and population growth projections.
Buying an investment property can serve as a cornerstone for wealth building. Conduct broad research, choose wisely, save diligently, and then let’s get you the loan you need to make your property investment dreams a reality.
Once you’re ready, speak with the trusted team at Trusted Financial Choice!