Investing in property can be a wise asset class and when planned and executed well, over the years your investment should continue to repay you! So how do you get it right without feeling over-whelmed? Start with a Plan that includes a clear Goal and that can double as Property Research Checklist. For example;
Goal – Have a clear goal such as “In a desirable location with future growth prospects and a property style that appeals to quality tenants is your ultimate goal”
Property Research Checklist – Each location will suit a certain style of tenant and each property will appeal to a certain tenant so knowing this in advance will help you to assess the possibility of each location and property from a pure investment perspective. Leave your emotions on the pavement when you are searching for an investment property.
- Define your purchase budget and if you require Finance, seek pre-approval before your start searching.
- Research and define the property locations that you prefer taking into consideration affordability, tenancy desirability, capital growth etc.
- With your budget and property locations in mind define the property options available for example land, house, or an apartment etc.
- A property’s location within a suburb is an important aspect to consider for example a property that is located in close proximity or walking distance or a short car drive to shopping, cafe’s, transport, and education services are highly desirable.
- Researching and sourcing a property with:
- A configuration that is driven by local demand from its location and your budget, for example 2 bedroom and 2 bathroom with off street car parking may be ideal for young professional or students sharing an apartment,
- Low to limited overlooking issues,
- Lots of natural light, larger room, higher ceilings, a breeze way and/or a balcony overlooking a garden, bushland or natural vegetation is great for natural ventilation which also affects how we live and feel at home,
- Good storage facilities,
- Internal laundries and car parking are important for all tenants, so there inclusion in your criteria is a worthy consideration,
- Limited to no structural issues,
- Unapproved building works are not ideal, as they can be difficult and expensive to rectify to Building Code and be approved,
- Distance to busy transportation, flight paths, on a roundabout or similar or major entrance or exit points of large commercial or education premises,
- Is or could become (with low financial outlay) a neat, tidy, safe, clean and an appealing property,
- Having low and ongoing operating or maintenance costs is a wise consideration too. Properties with large common areas or pools, spas, BBQ areas etc may appeal to tenants but are often not used and a premium cost for property owners. Consider whether these ‘nice to haves’ for tenants make financial sense for you,
- Check the local area for changes and risks that may effect your research,
- Sourcing a property that is priced below the market median and that can provide positive incomes annually are important financial considerations for investment property.
I hope these tips from our experience will help you develop a plan to finding a great investment property and good luck with your search!
If you would like further help to develop an Investment Property Research Checklist or research and secure an Investment Property please Contact Us. We would love to help you.