What to look for in a property for investment

11 Nov 2020
Jon Byrne

It may be a long process to search for the best investment property. Not only do you need to care about your long-term wealth ambitions, but you need to make sure that you can help reach these goals with the investment property you purchase. We offer six tips in this article to help you understand what to look for in an investor's portfolio.

Exploring the market
Across Australia, there are many property markets, each doing a bit differently depending on a variety of factors. Do your study until you have a few markets in mind to learn how these markets have worked in recent years. You'll want to hear about rental rates, vacancy rates and the types of available rental properties.

Calculate the expense
You need to consider the distinct costs you will have over the time you keep the property before you get a mortgage. This expenses may include payments for land management and costs for repairs. Be sure these expenses are matched with what you intend to return from the growth of capital and your rental yield.

Place Position Place
You'll need to identify those particular locations of interest after you've narrowed down the markets you're involved in. Entering a decent market is fine, but it is much better to acquire a property in a top position within a great market. Be sure that you weigh the proximity to schools , public transit, shopping , dining opportunities and open spaces to houses.

Rental yield
A crucial aspect of the analysis is understanding the rental yield of assets. By applying the revenue you expect from the property, dividing it by the sale price and then multiplying it by 100, you can measure a property's rental yield. If you want to get more precise, you should talk to an expert in the industry to take into account the mortgage repayments, taxes and other costs to determine the true return.

Consider growing capital
You will need capital growth to also be considered. Not only is it a huge part of helping you to create more wealth by investing in property, but owning a property with strong capital growth will allow you to increase your portfolio when you sell or use the equity in your current property.

Around levies and taxes
There are different regions of differing levies and fees. As this will depend on your rental yield, you will need to consider what the prices and land taxes are for various regions.

It may be overwhelming to locate an investment property, so you can make sure the quest is a methodical one by following the tips above and that you have completed all of the due diligence until purchasing.

Note this article is not a financial or legal advice. Please check with your financial and legal qualified advisors before taking any decisions on your own.

For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle & Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or https://www.nobullrealestate.com.au

What to look for in a property for investment

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