November 23, 2014
Here are my top four tips for purchasing an investment property.
1) Clearly understand why you want to buy an investment property.
Whether you purchase with long term retirement funding in mind, short term capital growth or maybe to quickly renovate and 'flip' the property for a quick return, this question will determine the type of property, its location and the timing of your purchase.
Different classes of property such as home units, houses or vacant land, can out-perform one another at different times. For example, vacant land will provide no rental income, but may appreciate more quickly if purchased in an area with limited supply. Home units/townhouses might mean less maintenance costs and higher rental return but may not give you the capital growth over time that a house and land will give you. Some areas offer higher rental returns, but it is important that you do your homework as often these properties provide lower capital growth opportunities.
You don’t need a crystal ball to understand when a good time to buy is. The market place grows constantly; the suburbs you may not think are good investments today may be worth a fortune into the future, as urbanisation spreads.
There are still many opportunities in the outer rim of Perth offering fantastic property prices with good rental returns. For instance looking at older areas where future capital infrastructure projects are planned may offer good prices now with handsome returns into the future.
So timing means ‘anytime is a good time to buy real estate investments’ in every market. At any time you will be able to find good opportunities. You just have to start looking…….
Location is one of the foundations of property purchasing no matter what your reasons are for buying. This doesn’t just mean living by the ocean or on the river, this also means buying in areas that offer fantastic local infrastructure like proximity to public transport, shopping, schools and family recreation areas.
4) What is a good price?
Investing in real estate is usually about capital growth, so choosing a property that is more likely to increase in value is the most important decision you will make. Therefore, buying at the right price is absolutely critical.
Never consider purchasing property in areas you are unfamiliar with. Get to know your market and more importantly your selected areas of interest. This is where I can help. There are many avenues through which to conduct your market research to gain the knowledge required to help you make sound investment decisions, which I can talk you through.
I would love to assist you in your investment property-buying process. Feel free to contact me at any time (mobile and email details are listed below), so that we can arrange a time to meet and discuss how to go about purchasing an investment property.
Mobile: 0412 656 184