Buying a property to rent out is a popular form of long-term investment in Australia. For property investment, houses and units are easier to understand than many other types of investments, yet they do have some issues you need to be aware of. Property Investment needs to be researched.
- Familiar markets – Consider buying an investment property in an area you are familiar with as it will take you less time to research. Check recent sale prices in the area to give you an idea of what you can expect to pay for local properties.
- Growth suburbs – Look for areas where high growth is expected, where there is potential for capital gains.
- Rental yield – Look for areas where rents are high compared to the property value.
- Low vacancy rates – Find out about the vacancy rates in the neighbourhood. A high vacancy rate may indicate a less desirable area, which could make it harder to rent the property out, or sell it in the future.
- Planning – Find out about proposed changes in the suburb that may affect future property prices. Things like new developments or zoning changes can affect the future value of a property.
- Attractive features – Look for investment properties that will appeal to as many people as possible, like a second bathroom, lock up garage or nearby shops, schools and transport.
- Wide appeal – Find a property that will attract more than one segment of the rental market such as singles, couples, young families or retirees.
- Low maintenance – Keeping costs down is important, older homes or those with features such as a pool or extensive landscaping may cost more to maintain.
- Property type – Units can be easier to maintain than houses, although you will have to pay body corporate fees.You can either manage your property yourself or engage a managing agent to do it for you. If you manage the property yourself, you will avoid paying management costs but you will have to do everything, from showing the property to tenants to collecting rent and organising repairs. You also need to comply with landlord regulations.If you use a managing agent to look after the property, the management fees you’ll pay are tax deductible.
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Contact Carolyne for more Home Buying Tips or call 0424 990885
Post By Carolyne Hawkes Northern Beaches Estate Agents
Carolyne Hawkes is a Licensed Real Estate Agent with Northern Beaches Estate Agents. With nearly a decade of experience in helping clients sell and manage
their properties, with her systematic approach and negotiation skills, she offers high quality service with her knowledge, to all clients who are seeking to buy or sell their properties. Carolyne is a real estate specialist living and working on the beautiful Northern Beaches of Sydney.