What To Look For In An Investment Property
How to devise a strategy for buying investment property
We pride ourselves on being highly experienced property strategists who provide both first time and experienced investors with a wide range of options and strategies when it comes to property investment in Australia.
These strategies are based on your particular goals, needs and circumstances, and take into account factors such as your current property portfolio, your financial aims, and your risk profile. We then help you to select an investment property option that will best suit you now and moving forward in the years ahead, and guide you through the entire process.
In most cases, the reason for buying an investment property is to create ongoing, regular income through renting it out. This means that what you are looking for in terms of the type of property, its location and cost will likely be different compared to searching for a home in which you and your family intend to live. For most people establishing or growing a property portfolio, this means you have many more options and choices to make.
The location
For instance, when it comes to real estate investing it can make sense to look beyond your town, city or state. The aim should ultimately be to invest in places with the potential for growth and high rental yields, and so you may need to venture into areas of the country with which you are not personally familiar. You should also be aiming to invest in areas with low vacancy rates, as this can be a reliable indicator of a suburb’s desirability. It is also advisable to be up to speed on any proposed planning or zoning changes that are in the pipeline, e.g., roads being built, planned public transport infrastructure, new retail or housing developments, etc.
The property
There is a wide range of investment properties on the market in Australia, and so selecting the right sort of property for the location in which you are intending to buy can be crucial. Whether it’s a unit, an apartment, a townhouse, a detached home or a luxury property, it’s important that the style of property matches the general demographic of the area in which you intend to buy. A large garden, for instance, might not be as important in a town where a large proportion of the renters are students, while a small apartment might not have huge appeal in an area largely made of up young families.
The features
Ideally, an investment property should have appeal to a variety of different people in the rental market. If your property is only considered an attractive proposition by only a limited sector, this can impact on the occupancy rate and rental returns. Therefore, a property that has a range of desirable features, e.g., a garage, a balcony, close to schools, etc., is always going to have greater appeal.
Likewise, there are certain features that will always make a property more desirable to all types of renters. A kitchen and bathroom that are in good condition are generally important to prospective tenants, as are neutral colours and decoration.
The upkeep
You also need to consider the maintenance that may be required to keep a property in a fit state so that it appeals to renters. High ongoing or frequent maintenance charges can impact on the overall value and returns from your investment. The overall quality of a property and the amount of work required to ensure that it remains an attractive rental choice should therefore be borne in mind when adding to your property portfolio.
Learn more about how to invest in property
If finding the sort of information that we have detailed above sounds daunting, it need not be.
Power of Property undertakes extensive research and data gathering so that we have comprehensive knowledge of property markets and developments right across Australia. You get access to a range of information, including demographics, and so can make highly informed decisions about potential growth, average rents, vacancy rates and suburb reports without having to do the leg work yourself.
To kick-start your property investment journey, we offer free, one-on-one strategy sessions that are designed to answer all of your questions and to make recommendations about property investment options designed to meet your needs.
Call us on 0407 785 560 or book online to arrange a strategy session.
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