Investing in property can be a great asset for your future, however the right steps must be taken to ensure that it is a smart and profitable investment.
With historically low interest rates and various incentives from some of Australia's lenders, now is a great time to invest, but it is vital to have a proper plan in place before putting down a deposit and committing to a long-term investment.
This beginners property investment guide will help you to make smart choices when purchasing your investment property...
Be smart about the search
Assessing the future value of a property is crucial in finding the best investment property. You can get a better understanding of the long-term return on investment in a particular suburb/area by looking at historical data related to real estate sales. However, financial data only offers a part of the whole decision.
Location is a main factor when determining the value of a property. Reasonably-priced real estate may be located in an area where properties sit on the market for a long period of time, so it's very important to avoid unpopular neighbourhoods.
Tenants generally look to live in an area that has low crime, good schools and nearby attractions such as public transport, shopping centres etc. It's important that your location caters fro your desired tenants when you're shopping for an investment property. For example, a property near schools and parks will attract stable and reliable families who will remain tenants for a long period.
It's always a good idea to stay one step ahead in the planning process before you make a purchase. Ensure that your finances are in order before you start the search. Popular neighbourhoods in Adelaide have competitive investment real estate markets, so you need to be ready to act when you find a suitable property. If you need financing for the purchase, you should consider obtaining a pre-approval loan.
There can also be many expenses related to maintaining a property that can't be easily calculated. For example, fixing a sudden electrical or plumbing problem can set you back financially. So thinking ahead and setting aside funds for unexpected repairs and other ongoing costs before you purchase a property is a wise decision.
Property Investment is a pretty big financial decision that requires careful consideration and assistance from experts. The team at Mortgage Choice in Blackwood are ready and willing to help you with the process of investing in property.
Watch this video for further tips on how you can get started investing...
So contact us today at Mortgage Choice in Blackwood on (08) 8178 0700 to help you get started with your investment property today.
Charlotte Gray, Loans Consultant
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