- Have someone that has your best interest at heart on your side.
If buying property is new to you, (and even if it isn’t), then don’t rush out and buy the first property that you see. There is a lot of good science behind buying a GREAT investment property, that will ensure your property purchase will perform strongly in both the short and long term.
Most importantly, it is ok to ask for help. Surrounding yourself with people you trust, who have done it all before and are experienced and knowledgeable about property investing, will certainly place in you in a stronger position than going solo.
A good, qualified Buyers Agent is an expert in the property industry, understands the intricacies of the market, specialises in knowing what constitutes a good property and certainly always has your best interest at heart. There is no better support person to have when buying property.
- Good strong financial advice
Having a good Financial / Mortgage Broker on your team will certainly p giving yrovide you with clarity over, How much you can borrow, When you can borrow and the type of property you can buy depending on your circumstances, e.g SMSF.
By establishing your borrowing capacity early in the property buying process, this enables you to move far more quickly without too many conditions when gong to purchase a property. This is always a very favourable position to be in when presenting a contract to purchase, especially under a Multiple Offer situation.
- Always leave yourself a financial Buffer
No matter what the market, it is important to ensure that there is always some money in the kitty to cover any unexpected situations that may arise. Investment properties are a long term investment and smart investors always set themselves up to ensure they can cover a change in the market, an interest hike, a loss of income through prolonged vacancy or an unexpected repair to the property. Unknown and unexpected costs often arise so it is important to be able to make those necessary financials contributions when needed. The last thing you want to do is be forced to sell!
- Be clear on what your goal is
What do you what out of your investment property? Is it Capital Growth or Yield?
Typically, most investors are looking for a well performing asset base that one day brings them financial freedom. Therefore, Capital growth is always seen as the most important factor when purchasing Investment properties and with that in mind it is important to have a clear long-term goal and stick to it.
Identifying those areas that will provide strong capital growth is the key to success. This is where the experience and local knowledge of our Buyers Agents at Location One make all the difference.
Having a good Yield for your Investment Property is important to help service the loan however having yield or the desire to positively gear your investment property as a sole or main focus may come with some other risks – perhaps the property will not be in a position to attract good long term Capital Gains, it may require substantial renovation/ maintenance to maintain the return or it is a peculiar investment that will be difficult to re-sell down the track? These are all considerations to take into account and decisions that should not be taken lightly.
The best outlook for a good Investment property is to have a good balance of the two. Have a strong focus on what is important to you and stick to it.
- Don’t Buy with your heart.
Buy with your head!
Investment properties should always be about the strategy, the statistics and the research.
Take the emotion out of buying an investment property – you don’t have to fall in love with it aesthetically, as long as you have a clear goal on what you want to achieve, you have investigated the property and carried out the necessary due diligence and the property still stacks, the chances are it probably is a good investment.
A Location One Buyers Agent does all the hard work for you and makes sure all of the necessary due diligence and research is completed, making your Investment property purchase a sound one.
If you would like an obligation free chat about purchasing your next investment property please give us a call today on 07 3262 5311.