Are you looking to purchase an investment property ? If so the signs are looking good with Australian house price growth set to surpass those of all major economies.
Low interest rates and low vacancy rates means that now is an incredibly attractive time to buy. But what is the best way to go about it?
Here are some tips on how to succeed in property investment.
1. Understand the market
You will need to understand the market forces of supply and demand and how they will affect property. This knowledge will guide you on where to buy and predict where the next growth areas are expected to be.
2. Have a strategy and a timeframe
Set yourself clear goals. You can then budget for them and stay on track and get the best return. Make sure you decide when you wish to purchase, how much you need and how long you expect to hold the property for. Once you have a strategy, plan everything in accordance with it and do not stray.
3. Look at rental returns in the area
Find out what the current rental returns are in your desired investment area and how much they have changed in previous years. Also discover what the expected growth in rental returns will be so you can evaluate your returns in the future.
4. Ensure you get the best deal for your loan
As well as getting the best deal from a buying point of view for your property it is also important that you get the right package for your loan. Look at the various options available for fixed rates as well as variable, as you may find one will suit your strategy better. At the moment rates are low so taking advantage of them now will pay off in the long run.
5. Choose a home that is attractive to tenants
You don’t want the hassle of a bad tenant or a high turnover. If you choose a new property in a great location you will naturally attract better tenants. Once the property is purchased it is important to put a solid lease in place, and be sure to use a reputable rental agency to find a tenant that is the right fit.
6. Consider future infrastructure
Discover what the local and state government plans for infrastructure are in your desired purchasing area. If there are plans for new or improved facilities then you can expect it to be a hotspot in a few years. Any new schools, hospitals, roads, shops or developments can all affect the future value. On the other hand if there is nothing planned then the value may not increase as much as other areas.
7. Speak to experts
As well as doing your own research it is a good idea to talk to a professional who knows about property investing and the wider market. Often they have access to information you do not and may see things differently. This will give you a strong guide as to whether purchasing is a wise choice.
8. Do it now
So may people talk about investing but never take the leap. Make this your year to do something great and secure your financial future.