Data from Mortgage Choice's annual Investor Survey found more Australians believe now is the perfect time to buy an investment property than ever before.
The survey found that 74% of respondents thought 'now' was a good time to invest - up from 71% in 2015. With interest rates sitting at record lows and property prices continuing to rise month after month, it is little wonder why so many Australians feel optimistic and confident about property investment.
But while the current market conditions seem ideal for property investment, there are some important steps that all potential buyers need to take before heading down this path, including:
1. Get you finances in order
When buying an investment property, it's crictical to understand the costs involved. There are more costs involved in owning and managing a rental property than merely the dwellings purchase price. It may be that the property is left vacant for a short period of time or that appliances within the property break down and need to be fixed. As the landlord and property investor, all of these events will cost you money. So, before buying an investment property, it's important to make sure you're financially prepared for unexpected expenses.
2. Know your audience
Before purchasing an investment property, it's a good idea to consider who you intend to rent your property to. Knowing who your target market is will help you to determine the type of property you need to purchase. When shopping for an investment property, it's important to look at properties that would appeal to a broad range of tenants. Properties that are located a short distance from important amenities will always be in demand and will increase the chances of your investment staying constantly occupied.
3. Understand what you want to achieve
Do you plan to hold on to your investment property for a prolonged period of time or would you like to see an immediate return on your investment? By knowing exactly what you want from your investment, you'll be well placed to buy property that meets your needs.