Buying Investment Property- Steps to Consider Part 1
The number of property renters in Australia is rising as homes become less affordable to buy. This is good news if you’re a property investor because maintaining a good occupancy rate is crucial to your investment success. During the property boom of the 1990’s, investment properties were all about capital gains; properties often jumped in value whatever you bought. That’s no longer the case. Now the boom has passed, investors need to be more selective about the properties they are buying. Here are a few steps to consider during the process.
Step 1: Location
For a successful investment, you must acquire the right property in the right location. Check for proximity to schools, transport, sports, entertainment and areas of future job growth. The property needs to be in a safe clean environment, with an established rental demand.
Step 2: Buy Quality
The building must be appropriate to the market. Eg: at least three bedrooms for families. It should be well built (brick and tile is desirable) and have low maintenance buildings and outside areas.
Read this blog next week for the 3rd and 4th steps to consider when buying investment property.