There is something very exciting and positive when you make the decision to buy investment property as a positive approach toward financial freedom and provide a secure and enjoyable retirement.
Many potential investors procrastinate wondering whether it’s a good time to buy or whether they should wait for the market to slow down, however the best time is NOW! Not only does real estate return higher yield than inflation, it generates income along the way to help you pay for the property.
As with any endeavour – success is based on knowledge, planning and a proactive strategy. To get you off to a good start, Invest Hibbards have put together a simple beginner’s guide highlighting key tips.
How much can you afford?
Firstly, you need to calculate what you can realistically afford to invest in property; factoring in interest (and principal) payments, property maintenance. A specialist broker will be able to assist you with these calculations to ensure your investment goals are achievable within your budget.
When buying rental property, areas with infrastructure, community services and convenience are ideal investment regions attracting quality tenants looking for homes or units located close to schools, shops, recreational facilities and accessible to public transport etc.
Research / Market Trends
If there is a housing shortage or the area is predicted to experience considerable growth and development, investment property is likely to appreciate more rapidly. Depending on your budget, if you can afford buying investment property located close to a central business district or university there is always a high rental demand.
Choose Mid-Range Real Estate
As mentioned above, from the start you should be realistic with your investment property budget and take a conservative approach. Buying rental property that’s mid-range attracts greater rental demand and rental yield at this level.
DIY – Pros & Cons
If you decide to DIY and source your own investment property make sure you have really done your research.
- Where possible find out why the vendor is selling. This may help you negotiate a better price for the property.
- Arrange for pest & building inspections; checking on structural defects or signs of pest/termite infestations.
- Is the property appealing for tenants (i.e. liveability, practical floor plan, proximity to conveniences?
- View property several times, check things are working, noise levels, neighbourhood etc.
- Rental Management – are you planning to self-manage your investment property portfolio; i.e. find suitable tenants, understand rental laws and obligations, carry out regular rental inspections, collect the rent and deal with all the maintenance issues etc.
Relax! Invest Hibbards can make your wealth creation journey simpler, we have a range of newly built, tenant ready high yield investment properties located in cities throughout Australia available now!
If you’re an investment property beginner looking for a successful strategy, why not leave it to the experts and contact Invest Hibbards for best property investment advice. Our team of property strategists can personalise an investment property plan tailored to your budget and wealth creation goals – saving you time, energy and money! Click here to view our easy process.
Contact us today to arrange a complimentary, obligation-free session with one of our property experts to discuss your individual needs and formulate a plan. Phone 0428 665 259 or click here to complete the online contact form.