When investing in property, it pays to do so wisely. While record low interest rates combined with unique incentives from some of Australia’s lenders is making now a great time to jump onto the property ladder, it is vital that you have a plan in place before contributing a substantial deposit and committing to a long-term investment. This basic guide to property investment for beginners will help you make the right choices when it comes to buying real estate.
Be smart about the search
Finding the best property for investment purposes is a matter of assessing the future value of a property. You can get a better understanding of the long-term return on investment in a particular area by looking at historical data related to real estate sales. However, financial data offers just one portion of the big picture.
Location is always a major factor when determining the value of a property. Real estate that is offered at an affordable price may be located in an area where properties sit on the market for a long time, so it's important to avoid unpopular neighbourhoods
Tenants are generally looking for a place to live in an area that has low crime, good schools and an abundance of nearby attractions. Make sure that you choose a location that caters to your desired tenant when you're shopping for an investment property. For example, you should look for a property near schools and parks if you want to attract stable and reliable families who will tenant the property for a long period.
Stay one step ahead in the planning process before you make a purchase. Get your finances in order before you start the search. Popular neighbourhoods across Australia have competitive investment real estate markets, so you have to be ready to act when you happen to find a suitable property. Consider obtaining a pre-approval if you need financing for the purchase.
Thinking ahead isn't just a matter of planning for the predictable expenses of owning an investment property. There are many expenses related to maintaining such a property that can't be easily calculated. For example, fixing a sudden electrical problem can set you back financially. Be sure to set aside funds for unexpected repairs and other ongoing costs before you purchase a property.
Real estate investment is a significant financial decision that requires careful consideration and assistance from experts. Mortgage brokers are standing by and waiting to help you with the process of investing in real estate so contact a Mortgage Choice home loan expert today.