When buying an investment property, if may often feel like one must summon all the emotional intelligence the human mind can possess, in order to make wise decisions, and not go off track.
However you can still surrender to the sights of that high rise building you’ve had your eyes on, or maybe you are planning on moving to that friendly neighbourhood at a later date, and it is vital that you are well aware of the pro’s and con’s of your potential investment property before taking any steps.
Our friendly staff at Abacus Home Loans, have put together (below) some key points that you consider when looking for an investment property or making the decision to invest in one.
2. Rental Income
5. Remember that you are in it for the long haul!
6.Thinking of buying that investment property?
When investing in property not only do you want your property to be in a good area, but you also want to make sure that it has potential for capital growth.
It is of great benefit, if you target areas and regions that are bursting with new jobs (spread across multiple industries), and growing populations, as such localities will generally have stronger incomes.
The right property will provide you with reliable cash flow if you decide to rent it, and as the years progress you may want to increase, or even double the income received (rent), and this may depend highly on “lifestyle“, and the property’s location amongst other factors.
Before considering a property as possible investment, it is important that you assess if the property is in a good environment, as well finding out if the property has close proximity to transportation and amenities. Target individuals (future occupants) are always looking for “convenience”, and they may not like the idea of having to drive far from their places of residence to reach certain destinations (schools, gyms, transport etc.) or to buy basic items, and if your property is not close to such, then it may lose its appeal to a certain degree.
Depending on your budget you may not always have the luxury of choosing to live in a “prime location”, but investing in a property that is somewhat close to the CBD, business areas, schools, and amenities, can definitely be of great advantage.
Aesthetics are important, as you want to make sure that your property has the right appeal that can attract, and cater to the wants and needs of various individuals, for example; a good amount of natural lighting, a functional floor plan (aligned to the needs of the occupier), neutral tones and airy rooms. Besides visual aesthetics, it is also important to find out if a property conveniently has secure parking spaces and garaging.
You will also want to consider the age of your property, and examine its condition, to determine if any repairs are needed. Small repairs are not to be feared, as you can still get a high return on the property if other boxes are checked. However repairs may be costly, if major works need to be done.
Remember that you are in it for the long haul!
Property investments are indeed long-term commitments, and it is important that you develop a clear vision of the future, and an open mindset. As you will often find even “aesthetically challenged” properties, could sometimes be hidden jewels that may possess great market potential, and turn out to be good investments! If spotted and nabbed.
It is also imperative that you are aware of your borrowing capacity, and the type of property you are looking for, and a knowledgeable finance broker can with the right information you need, in order to make those important decisions.
Thinking of buying that investment property?
Talk to the experts in property market! And get an honest opinion on your property’s size, profile, and demand (by buyers and renters) before you make any decisions.
Feel free to call Abacus Home Loans on 1300 268 686, or email us today!
The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice