A Step-by-Step Guide To Buying An Investment Property
Introductory guide to buying a property investment...
Buying an investment property need not be a difficult task as long as you understand the process. Before you decide on a location and property you must know what you can afford to buy and have your financing arrangements in place.
Your property needs to be in the right location, be competitively priced and have good long-term rental and capital growth potential. So be very selective about what and where you buy.
Step 1 -Do your research
Get property investment advice. How has your location’s capital growth performed in the last 12 months? What is the current median price of similar properties. Ideally you should be buying below market price. Has the median asking price for rents risen or fallen. What is the average annual rental yield of similar in your location?
Step 2 - Organise your Finance
You should ask your bank manager or mortgage broker to make an assessment of your financial position so you can work out exactly how much you are able to borrow. Armed with this knowledge you can take the next step.
Step 3 – Choose the right location
Property investment advice will help you to find a suitable location and where the next real estate hot spots are. A property’s value is affected by existing level of rental demand and the potential for jobs growth in a particular location. As does local area infrastructure, such as schools, transport, shopping, entertainment and recreation facilities.
Step 4 – Finding the right property
The type quality of your property is important. Whether you choose an apartment, townhouse or freestanding house will depend on your budget, rental and capital growth potential, the location and maintenance costs.
Step by Step Check List
- Get professional property investment advice
- Do your research
- Make sure your finance is structured properly
- Know what your investment property is really worth
- Think about capital growth potential
- Assess your maintenance costs before you buy
- Factor rental yield against expected costs
Make Property is a business unit of The Make Group and specialises in researching and locating the best property investment opportunities across Australia. Whether you are seeking a Brisbane investment property, Sydney investment property, Melbourne investment property, Gold Coast investment property or further afield, Make Property has the investment property portfolio you are seeking.