Property Sauce AU

TOP 10 TIPS FOR BUYING AN INVESTMENT PROPERTY

It’s never a wrong time to buy property if you know what to look for and how to find it.

1. Leave your emotion at the door
Buying an investment property requires a different mindset to buying a home to live in. Start your property search with a clear head. “Investment property decisions should be made from a logical point of view, not an emotional one.”

2. Location Location Location
Don’t be afraid to look outside your own suburb. Property Sauce at the moment favours regional areas such as the Hunter and Newcastle that offer good amenities for tenants and are close to public transport. 


3. Avoid oversupply
When looking at potential investment properties, take into consideration other local factors that could impact on your rental and capital growth. Are there many similar properties close by? Are properties about to come onto the market that could cause a glut and drive the price of your property down? “You want to mitigate against the risk of oversupply.”


4. Buy new
Buying new has the advantage of giving buyers time to research a development and learn more about a potential investment. Check out the developer, architect and builder. In certain States, buying new can offer stamp duty reductions. There is the added tax advantage of depreciation and maintenance should be lower than an older property


5. The right amenities
Retail strips and shopping centres can be attractive amenities if your property is within a comfortable walking distance of up to 700m. The same applies for train stations, hospitals and schools. Being too close to amenities can start to impact negatively on a property as noise and traffic considerations come into play.


6. Give your potential Tenants what they want.
Make sure any investment property will suit your target rental market. 


7. Budget
Develop an Investment property buying budget and find out what kind of property is right for you. While it’s important to be clear about your investment objective, be it for capital growth or sustainable yield reasons, it’s also crucial to know where you stand in terms of borrowing capacity and investment readiness.


8.Get a good lender
Investors with a clear idea of their property preference as well as a strong relationship with a mortgage broker or a bank  have the best chance of success. Property Sauce can introduce you to the right brokers.


9. Understand supply and demand
Vacancy rates are low and there are no signs of this improving in the short-term, so investors can continue to expect low vacancy rates and increasing rental yields.


10. Take advice from experts
When it comes to property, everyone has an opinion. But it may pay to take advice from experts in the field, the people that have worked in the industry over the long term and have a strong track record, and believe residential property is suited to a long term investment strategy 


Give Property Sauce a call on 02 95717650