It’s our guess that you may still be thinking about buying an investment property this financial year. It’s just about doable. And indeed, there are some excellent deals out there.
It’s little wonder that you’d like to take advantage of these opportunities.
Last year, some people were waiting to see what happened with the election, waiting to see what decisions are made on negative gearing, waiting to see what happens with the US presidential candidacies, waiting for the right weather … waiting, waiting, waiting. Some people are still waiting for all the same reasons.
We say no more WAITING !
But what if you find your local property market too hot and the returns just don’t make sense..? You may be thinking about buying a property in another state?
When buying an investment property it’s critical that we do it with a commercial approach and don’t blindly accept what’s being presented to us by marketing supplied by the sales agent. As human beings we naturally assess properties as though we are going to live in them ourselves and this can be a mistake.
Here are six key tips that can help you make a better investment decision towards buying an investment property:
- Be suspicious of listing photos that show the front of the house but not any part of the roadway, check the street-view to determine the true position of the property. Don’t be fooled by interior photos taken with wide-angle lenses, these result in perspective distortion that often misrepresents the dimensions of a room.
- Where possible, ask for a floor plan so you can get a more accurate sense of the relative size of rooms.
- For a buy and hold strategy, you may want to avoid properties that require large areas of exterior painting or maintenance of render.
- Always ask the agent when the listing photos were taken. If they hedge on the answer assume the photos are not current.
- Identify potential adverse factors for long-term tenancies, especially sources of noise that may disrupt a peaceful night or cause irritation during the day. For example, a shared boundary with a 24 hour service station is hardly ideal.
- Always get input from your prospective property manager before you commit to a property, they can provide a local perspective to help you choose properties with the right attributes for the local rental market.