Are You Thinking Of Buying An Investment Property In The Next 12 Months?

So, you’ve made the commitment to buy an investment property in the next 12 months. How exciting…. But perhaps daunting!! Whether it’s your first property or you’re simply adding to your existing portfolio, here are some tips and ideas that should help make your purchase a success!

1. Firstly, get your finances and tax in order. See your bank or a mortgage broker (I highly recommend a good mortgage broker as you can often get a better deal), and get your pre-approval sorted. You don’t want to miss an opportunity because you’re not organised.
2. Working out where to buy can be a challenge. Some simple tips I recommend are: close to schools, transport and shops – it should make the property easier to let each time it becomes vacant as it will widen your market. An area with good infrastructure is definitely a safer option.
3. Have a think about what your investment goal is long term. Are you looking for long term capital growth, or are you looking for cash-flow and a high rental return? Or, perhaps like me you look for a balance of both? Generally speaking you will have to compromise one for the other. Inner city may have high growth, but lower returns on a monthly basis (therefore more of a gap to pay the mortgage) – whereas a property which achieves high rent (often regional areas) will be less likely to offer high capital returns. The reason I love investing in Maroondah and Yarra Ranges area’s is they offer a good balance of both.
4. Find a trusted adviser in the area that can give you a realistic and honest assessment on what your rental return will be. Most sales agents will give rental return a stab in the dark – but that’s all it is. I suggest asking a local expert to go through and give you some tips on anything you’d need to do to make it ready for lease and also give you a realistic weekly rental figure. We can offer this service. Both Elaine Richards m:0438 329 261 and Martin Whatmough m:0417 388 117 from our office are happy to pop out before or after you buy a property to give you some advice. Both have been in the industry in excess of 10 years and have specialised in Property Management. This is a free service with no obligation.

We also have a great Investment Information Booklet that explains the ins and outs of residential property investment, landlord and tenant obligations and depreciation benefits as well as a lot of other useful information. It’s a free booklet just give me a call or text me your details and I’m happy to organise one to be emailed or posted to you.