Research your options
Property investment is still regarded as one of the secure long-term investments. It is important to know what type of property fits your requirement. Some investors may want to buy a property and rent it out straight away and others may choose to live and renovate it. Research through every possible aspect of the property purchase process. Investing in bricks and mortar can be a great way to create wealth but research your options before taking the plunge into property investment.
Partner up with experts
It is highly recommended for first time investors to engage an expert real estate agent who is honest and trustworthy, who can find a suitable investment property. Other option is to team up with experienced and trusted real estate investor who is already in the property investment business.
Know your budget
Knowing what to do making a successful investment. It is important to know detailed understanding of cash flow before investing in property. Check with your banker for pre-approval of investment loan, to make it easier before looking for suitable investment properties.
Location
Location plays an important role for investment properties profile. Homes in established and populated areas have low rental vacancy rate. Buying a property close to local amenities (child-care, school and universities), public transport and easy access to main roads are always in high demand with renters.
Increase in property value
The demand for regular requirement of rental properties also allow the property value to grow. During property boom, investors renovate properties and turn them over for a quick profit. Take advice from financial planner or lender if you are planning to renovate home before selling it, as some renovations and eventual sale could take several months to sell.
Depreciation and negative gearing
Your property will be negatively geared, when the repayments on the investment loan not fully covered by the rent. Speak to financial planner for ways to potentially save for example depreciation on certain items in a rental property. While negative geared property can have tax advantages, but it can also lead to financial stress if enough cash flow is not available to service the loan repayments, rates or body corporate fees.
Easy maintenance
Low maintenance properties are perfectly suitable for investment. An easy maintenance property is also attractive to renters, who ideally look for properties without building defects and low maintenance.
Property management
Management of an investment property comes with extra-responsibility. Most Investment properties are managed by property managers as they are well versed with legalities of property management. Real Value Real Estate provides value added service to the investors from the start by finding a suitable tenant, rental collection, regular inspections and dealing with tenancy lease breaches with well documented paperwork to Residential Tenancies Tribunal. Real Value Real Estate provides excellent property management service with honesty you can trust.