What To Look For In An Investment Property
What To Look For In An Investment Property
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 price will likely be different when compared to a home in which you and your family intend to live. For most people establishing or growing a property portfolio, this means you have more options to choose from.
When it comes to real estate investing, it can make sense to look beyond your own 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 average 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.
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 house or a luxury home, it’s important that the style of property matches the general demographic of the area in which you intend to buy.
A big 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.
Ideally, an investment property should have appeal for a variety of different people in the rental market. If your property is only considered an attractive proposition by 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 key 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.
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 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. We provide you with access to a wide range of information so that you can make well informed decisions based on demographics, potential growth, average rents, vacancy rates, suburb reports, etc., 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 based on your specific needs.
Call Michael Lawton on 0407 785 560 or Danielle Charlton on 0411 268 795, or you can book online to arrange a free, no obligation property investment strategy session.
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