Tips for Buying Investment Properties

Looking to buy an investment property? Here are tips to consider first.

It pays to do thorough research before buying an investmentproperty to ensure you get the best return possible. Here are the 6 golden rules all buyers should consider before leaping into the investment property market.

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Check out the total costs

There can be many ongoing costs when you buy an investment property.

Factor in upkeep and repairs

If you’re buying an apartment also look at how much is in the sinking fund and work needed down the track like painting or whether the roof needs fixing in the near term.

Go where the vacancy rates are low

The old adage, ‘location, location, location’ still rings true for property investment, which means it’s also essential to consider the proximity of the property to essential services like public transport and schools.

Get into the right gear

“If you negatively gear the property makes sure you’re not hemorrhaging money each month,” says Brennan.

Decide between growth or yield

Another deciding factor in any investment property purchase is whether you are buying the property for capital growth or yield.

Choose the right management

Once you’ve purchased your property, Pilkington advises owners to appoint a real estate agent to manage it. “Even though I’m a real estate agent I still pay a real estate to look after my property because I don’t want to have to worry about things like chasing rent or appearing at the Consumer, Trader and Tenancy Tribunal.

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Tags : Tips for buying home, negotiation skills, what to do what not to while buying or selling,real estate agent.