When you think about Property Investment there are three people in the know:
- You, the Investor and future Landlord.
- Your Investment Consultant who will help you find the right property.
- Your Property Manager who will look after renting and tenants for your property.
We got them all together to ask them – “What should new investors think about when investing in property”.
The cohesive advice we received from talking to the three interviewees came down to 4 main considerations. We’ve put them together for you below. If you’d prefer to see it in the interviewees own words here is the video:
1. Location, Location, Location
The first consideration for property investors should be the location of their investment property. Often people want to buy a property in the suburb where they live, so they can drive by and check it out, but that’s not always the best way to go.
When looking to purchase an investment property it is important to do lots of research on the features that prospective tenants are looking for. Such as:
- Shopping centres.
- Primary and High schools as well as daycare and kindergartens.
- Train stations, bus ports and access to freeways.
2. There are advantages to building your investment property
When considering buying an investment property you may weigh up the options between buying established and building. There are several advantages to investing in a brand new home, these include:
- The stamp duty that you have to pay on the property
- The reduced cost of maintenance for the property
- You can maximise the depreciation
- Tenants are willing to pay more for a brand new property
- You will attract a higher quality tenant
3. Leave your emotions out of your decisions
Its really important as a property investor that your decisions are not based on emotion. It’s not what the house looks like, or the colours or fittings; it just comes down to the numbers.
It needs to be a commercial decision where the property you choose delivers the outcomes you are chasing.
4. Property is a long term investment
It is important to have a long term strategy to the whole process and to make sure you have the financial structure in place to support and achieve your desired outcomes, regardless of what’s happening in your personal life.
Ventura iD and Multi Living Developments offer a free consultation service so you can see if developing is an option for you. Call (08) 9241 1600.