| What is Important when looking for an Investment Property
Investing in property is an excellent way to increase your wealth and secure your financial future. However, it requires careful consideration and research to make a wise investment decision. In contrast to purchasing a family home, investing in property is a primarily financial decision that requires you to think like an investor.
Capital growth is the most common driver of property investment decisions. Therefore, researching and choosing wisely when purchasing is essential. Choosing a property likely to increase in value is paramount, so buying at the right price is critical. A good buyer’s agent can be an asset in finding off-market or distressed property opportunities.
Rental yield is another crucial factor to consider when assessing a property’s investment potential. It is vital to determine both gross and net rental yields accurately, as this indicates whether the property is suitable for your investment goals.
You need to develop a cash flow strategy that includes ongoing income and expenses to predict the potential income you will receive from the investment. Most investors seek a positively geared investment, where the income exceeds the interest repayments and other costs. If the property is negatively geared, tax concessions may be available.
Location is everything when it comes to property investment. Proximity to amenities such as schools, shops, public transport, and healthcare has a significant impact on rental yield and capital growth. A good buyers agent will have access to professional tools to help you choose the right location.
The type of property you invest in depends on your budget, lifestyle, location, and investment goals. Houses are often more expensive but show better capital growth, while units generally cost less but have body corporate or strata fees.
It is also crucial to understand what potential tenants are looking for, as families will have different expectations than millennials or retirees. Conduct thorough research to gain insight into your intended target market.
In conclusion, property investment can be a lucrative investment opportunity if approached carefully. Work out precisely what you want to achieve, research thoroughly, and think like an investor. By doing so, you can build a strong property portfolio that secures your financial future.
Disclaimer: Although all care is taken. We do not give any warranty whatsoever to the accuracy of any content.
This is not meant to be financial or professional advice and is only of general nature. You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever. We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever