What’s Important When Investing in Property?

Buying your first investment property may initially seem daunting. But with our tips on becoming a successful investor, we take the stress out of your purchase.
Firstly, it is important to buy in a high-growth area. This ensures that you will benefit from steady increases in capital growth as well as collect more in rent over time. The key indicators you should be looking for when researching areas include a broad economic base, a diverse source of jobs, increasing immigration and a shortfall in rental properties. If you are still unsure, CBD’s and the city fringe are always safe options as there is never a shortage of jobs in these areas and they also house a large percentage of our country’s migrants. It is also important to look at what else may intice renters to live in an area. Are there schools, parks, universities and public transport nearby? These are the things renters look for.
Secondly, it is a good idea to select newer properties. It has been proven that renters prefer clean, fresh and modern homes. Newer homes are less likely to have problems. Everything is in working order, which means minimal hassle for the tenant. Additionally, there are some great tax benefits from purchasing a newer property. This means you will continue to benefit from your purchase yearly at tax time.
Thirdly, as an investor, you need to consider the affordability of a property. This term is two-fold. Firstly, are you able to afford the repayments and costs of owning an investment property? And secondly, is the property affordable for the rental market in the area? If you can answer ‘yes’ to both of these questions, you may be in the right position to purchase your investment.
Finally, before you purchase an investment property, it is good to have a plan. The best investments are always well-planned. Set goals and make sure you have a clear picture of your financial position and where you would like to be in the short and long term.
For further information on investing in real estate and for the newest listings from Oaks Property Sales, please contact our sales office.