Jumping into the property investment game can be very rewarding, as long as you are wise about the choices you make. Some of Australia's top lenders are offering unique incentives, and when you combine that with record low interest rates it makes now an excellent time to get into the property game. It's essential that before you decide to contribute a significant deposit and commit to long term investment, you have set a plan in place.
This beginner’s guide to property investment will help you make the right choices when it comes to buying real estate.
Understand what you're searching for
Assessing the future value of a property is the key to finding a property that will perform well as an investment. To get a better understanding of what the long-term return on a property may be like, you can look at historical real estate sales data in that area. However it's important to remember that financial data is just one portion of the big picture.
The location of a property is a major factor to be considered when determining the value of a property. Be aware of areas where property may sit on the market for a while. These are often the properties offered at an affordable price because the neighbourhood may be unfavourable.
An area that provides access to good schools, has a low crime rate and nearby attractions is generally an area that tenants look for. Remember, a property near parks and schools will attract reliable families who will occupy your property for a long period of time. You want to keep your ideal tenant in mind when you’re shopping for an investment property.
Be one step ahead of yourself
It’s important you are thinking ahead when you are planning to purchase an investment property. Ensure your finances are in order ahead of your search as many popular neighbourhoods in Australia experience very competitive investment markets, so you want to be ready when you find the right property. Obtaining pre-approval is something you should consider before financing your purchase.
The expenses of owning the property aren’t the only finances you will need to think about. Be sure you have a plan to set funds aside for maintenance of your property. You may suddenly need to fix an electrical or plumbing issue without warning. These things can’t be predicted so it’s important you have a plan to manage the ongoing costs and repairs that are involved in owning an investment property.
Don't do it alone!
Deciding you are going to invest in real estate is a choice that requires careful consideration and assistance from experts. Our team at Mortgage Choice Woolloomooloo are ready to help you through the process of investing in property. Contact us today to find out more about your options!
Did you know?
We also recommend a suite of property investment seminars from trusted property investment partners? Click here to take a look and make a booking now – they’re free!