Like your first home, buying an investment property is a significant financial commitment, and even though you mightn’t be living in it, there are many factors that make for a desirable, smart investment choice.
Here’s a handy guide to help you find the investment property that’s right for you.
Buying an investment property is an exciting time but it also requires good planning and careful consideration. Alongside your budget, it’s equally important to think about the purpose of your purchase – are you looking for maximum capital growth or somewhere to live in the future? If you’re looking for growth and sales potential, the decision-making process should be less about your personal living preferences and more about what will be appealing to buyers. If you’re looking for somewhere to call home
one day then consider how your lifestyle needs will change when the time comes to move in. It’s imperative that you think about your long-term plans realistically and consider all scenarios. For instance, who will be living there – just you, you and your partner, or your children, grandchildren, or elderly parents? Another question to ask is whether you want to pass the property on to your children or a loved one, and whether it will suit them and their future needs. Although these considerations may not be relevant in the short term, you’ll thank yourself in years to come.
"While some tenants will love spending their spare time in the garden, others will be looking for outdoors spaces that are low maintenance."
Photography By Maximillian
Location is one of the most important factors when choosing an investment property, so be sure to do your research before committing to a purchase. Firstly, before attending any inspections, find out the following: how close is the property to schools, shopping centres and the hospital? Are there any parks or nature reserves close by? What are the public transport options, as well as access to sporting facilities and other local amenities? Your future tenants will be looking to balance a desirable lifestyle with the practical side of things, so you should be thinking like this as well. Secondly, if you’re unsure of what an area is like, jump in your car and drive around during the week and on weekends. Stop at the local shops and drive past the parks and schools. This will help you get a feel for the area, whether it’s a busy or quiet location, and also give you a sense of the type of people that live locally.
One of the most appealing features of an investment property is its renovation or extension potential. When on the hunt for the ideal investment property, don’t just look at the home’s floor plan and configuration, but consider the land size or somewhere that you could build up and add another level. Thinking about your property’s long term potential will put you in good stead when it comes time for you to renovate or sell in the future, so be sure to look at the property from the eyes of an owner occupier or developer, not just as a rental property.
"Always be sure to do your research before committing to a purchase."
GARDENS AND LANDSCAPING
One of the best ways to keep your investment property stress and hassle free is with a low-maintenance garden. While beautifully landscaped lawns and garden beds are no doubt appealing, you do need to consider how much work a potential tenant is willing to do to keep the outdoor spaces looking just as good as when they moved in. While some tenants will love spending their spare time in the garden, others will be looking for outdoors spaces that are low maintenance. Whatever you decide, just be aware that potential tenants may think your property has too much upkeep, which could then deter them from applying.
Photography By Matt Chen
One of the most desirable features of a potential investment property is doing little to no work to get it market-ready, however, this is unlikely so be prepared for some additional costs. When you view properties, take note of any essential repairs or aesthetic touches that will need doing before you put it on the market – like afresh coat of paint or new carpets – as you will need to factor them into your overall budget. Take the time to estimate and research all of the additional expenses, trying to be as detailed as possible and obtaining multiple quotes for each job. Additional, unexpected costs can quickly blow out your budget, so do a thorough inspection and ask the right questions to identify what’s financially viable for you.