If you’re looking to diversify your portfolio and enhance your profits then property is generally a great place to start. Appropriate for novices and experts alike, property investment can provide that extra source of income that you desire. Just like any other investment though, property is not without its risks, and there are important things to consider before making a commitment.
To put you on the path to property investment success, here are 5 things to look for in an investment property.
- Find the Perfect Location
Everyone knows that location is essential to your investment property success. Not only will the right location enhance your capital growth – the money you get from the land itself – but it will also make your home property more attractive to investors. When it comes to location, be sure to:
- Research the area and its demographics
- Visit the location and neighbouring suburbs (at day and night)
- Check for amenities, transport, future developments, etc.
- Find a location that’s close to and or convenient to a major city
- Make a Budget and Secure Your Cash Flow
In property investment, you should never buy outside your means. Equally, you shouldn’t just buy an investment property just because of its affordability. Stringent budgeting will ensure that you know your income and expenses intimately. This will allow you to find the right property at the right price. Ongoing budgeting will always ensure proper cash flow, an important aspect of ongoing maintenance.
- Examine the Property Market Before Buying
The income you generate from your property will come from ongoing rent as well as the value of your house and land. This makes examining market trends and understanding the dynamics of where you buy essential. Look at historical trends in your area to see if your property is in a growth area and talk to a professional to get the best projections for the future. The long term strategy for investment is always selling for a profit, so put steps in place that make this as likely as possible.
- Look for Neutral, Not Unique
When you’re examining an investment property it’s important to make sure it’s not too aged or damaged, but also that it has as wide an appeal as possible. Unique home designs have their advantages, but to appeal to a wider range of renters you want neutral colours and blank canvasses that tenants can imagine themselves living in. If your property doesn’t have these qualities, look into how you can broaden the appeal through renovation.
- Protect Yourself at Purchase and Sale
To get off on the right foot with your property investment, you want to make sure you’re getting a good deal. Make sure you buy a property that’s within your means and have a property law expert take care of your conveyance – from research to contracts and settlement. These services can save you hundreds of dollars – a great start for your investment – while preventing future complications. One such benefit you can receive in conveyancing is finding out if there are any easements that restrict renovation – an aspect which could restrict your strategy.
When it comes to selling you should consider these services again, to make sure that your sale goes smoothly and you can enjoy the benefits of your long-term strategy.
For more information about property law and conveyancing in Brisbane, or to get expert advice and services, contact the team at Bartels Lawyers. We can provide specialised help when you need it.