Tips To Find The Right Investment Property
It’s time to put your future first. Don’t retire with nothing to back you up financially, get ahead now!
Investing in your prospective years can make all the difference to how you live when you give up work. By setting yourself up financially in your younger years, you can get a head start on achieving your goals. Find the right investment property and you will be well on your way!
Why is investing in property important?
Property investment is not for everyone. Some people prefer to invest their hard earned dollars in shares and stocks. But for those interested in investment property; it is typically considered one of the safer options to invest in.
If this is a route you are considering, you must first be aware of the pros and cons that are associated with investing in property.
Pros and cons of investing in property
There are so many factors to consider but the main ones consist of:
• Insurance – You can insure your investment against a wide variety of risks; natural disasters, fires, tenant damage/tenants leaving, etc.
• Capital growth – If you have chosen your investment well, you will see a rise in property value over the years to come in addition to regular rental returns.
• Tax benefits – If your property is negatively geared it could provide potential tax benefits. This is not always the case and should not be a deciding factor but is often a benefit to investing in property.
• Problematic tenants – While this doesn’t happen regularly, you could end up with the tenants from hell. They could damage your property, refuse to leave, not pay rent and cause several other headaches that could take months to resolve.
• No tenants – There is occasional periods where you will have no tenant occupying your property and you will be required to pay the mortgage repayments.
• Ongoing costs – In addition to the initial cost of the property, you will also find that there are ongoing costs associated with property investment. These include: rates, body corporate (if applicable), repairs, insurances, water, maintenance and more.
Property must haves
Similarly to when you are purchasing or renting a house for yourself and your family, the property must consist of certain features to make it an enjoyable and desirable place to live. Investments are no different.
• Location – You have heard it before and you will hear it again. A good location is important for attracting the right tenants. A good location is safe, offers peace of mind and is close to public transport, schools, shops, etc.
• Storage – From ample linen space to bedroom closets; storage is a crucial decision-making factor.
• Parking – Surprising to some, not every property comes with parking. By adding the option of a garage, carport, undercover or off street parking; you will increase tenant interest dramatically.
• Maintenance – It is in your best interest to find a property that requires minimal yard maintenance. Tenants don’t want to pay for upkeep of pools, gardens, etc. so unless you are willing to pay a professional to maintain the grounds, stick with simple!
Research the property you want
Buying property can be an emotional experience; however when making the decision, use your head and not your heart!
Research must be done into not just the property but also the area before taking the plunge.
• Infrastructure – What is happening in the area? Are future buildings, businesses or projects planned? This can have both devastating and beneficial effects on the value of your property, so ensure you know what is going on.
• Return potential – The expected return of a property is one of the most important things to consider when purchasing property. Do research and compare the property with those similar in the area on rental sites.
• Investment strategy – Do you plan on negatively gearing the property or receiving a positive cash follow? What is the loan rate? Suburb growth? Do you want a unit, house, etc? By comparing your answers to the above questions on the Homesales.com.au Investment Property Search, you will be shown options around Australia that are expected to produce the results you want.
Don’t just jump in and buy a property. Make sure you take the appropriate steps to ensure it is what is best for you financially and that your purchase will indeed be an investment. Don’t risk buying a bottomless money pit. For more information on property investment, click the link.
Investing in your future doesn’t have to be stressful. By considering the above points and doing your research, you will find the right investment property for you!
What tips would you offer someone trying to find the right investment property?
Disclaimer: I am not a financial advisor and this article should not be used as such. For financial advice, consult your financial advisor.
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