Tips on buying an investment property

Not all investment properties are the same...

Not all investment properties are the same...As a real estate agent I can't give financial advice. I always feel it is prudent for my clients to seek professional financial guidance to avoid unforeseen costs, maximise their benefits and ensure investing in property is right for their particular circumstances.  Once you have decided that an investment property purchase is right for you, this is when your journey with us as Real estate agents will begin. We can advise you on the potential income the property you are considering purchasing would generate, its likelihood for capital growth and help you identify and source appropriate properties that meet your criteria.

To help you in your search, here are nine key considerations when deciding on which investment property to choose: 

Vacancies – Always look at the number of vacant rental properties in your target area. You don’t want to invest where there’s an oversupply or somewhere that doesn’t attract good quality renters.

Rental income – Compare the rents being asked for similar properties. Can you make your numbers work at the going rate?

Future developments – Are there any significant developments about to come on to the market. A release of several hundred apartments places pressure on rental incomes and can result in a short to medium-term fall in values.

Entertainment – Finding a location close to cafes, restaurants and movie theatres increases its appeal to tenants.

Neighbourhood – The locality will influence the type of renter.

Schools – A rental property near a school is a winner, especially if you’re thinking of investing in a house. Families who rent are usually longer-term tenants. 

Council rates – Do due diligence on your favoured locations. You might be surprised at the difference from one council area to another.

Strata Levies - For strata properties the quarterly rates that you as the owner are required to pay can vary dramatically and will increase if the property has a lot of shared facilities that need upkeep. 

Strata reports for strata properties - Request and review the reports to feel comfortable about the state of the building and the plans the committee has for the near and medium term future.

Happy Hunting! - Josh