First Investment Property

Buying First Investment Property

The past couple of years have seen the world of real estate change from what we have all been traditionally used to. Back in the day, most people would rent until they could afford to buy the property of their dreams, yet now more and more people are continuing to rent, and instead are looking at buying investment properties instead. It makes sense when you stop to think about it; the dismal economy has seen property prices take a nosedive across the board, and has forced many folks back into the rental market. That means that houses are seriously undervalued, but their rental value is at an all-time high, with competition for those spaces very tight indeed.

To Buy Or Not To Buy?

That has created a very strong buyer’s market, and has many folks looking to dip their toes into the real estate investment pool. It’s not something that should be rushed into with the sight of the first “For Sale” sign that you see, and you’ll want to make sure that your first investment property is not one that you will regret in the long term. That means making the effort to do a little homework about your surrounding area, and finding out why one location is better than another.

Wher To Buy Investment Property

Your first goal then is to identify a city, or a section of the city, that you believe is going to experience sustained capital growth in the coming years. That location is most likely to be within 5 to 15km of the CBD, and should have a strong infrastructure already in place. That means that there will be plenty of shopping, schools, and public transportation in place, and all of it in an area that is well-established. Sydney is a perfect example of such a city, and with the population expected to increase exponentially in the next decade, it makes for a great investment opportunity.

Location, Location, Location

Those neighborhoods that fit the bill will be very high on the list of prospective renters, but you want to be sure that you set the rental rate at a price that fits the neighborhood. Doing that means taking a close look at your finances and figuring out what your monthly financial outlay is going to be. You need to make sure that the average rental price for the area is enough to cover all your expenses, so that you are not inflating the rental price just to meet your monthly budget.