TIPS FOR BUYING A PROFITABLE INVESTMENT PROPERTY

TIPS FOR BUYING A PROFITABLE INVESTMENT PROPERTY


To earn revenue from an investment property, investors have two options: buy property and sell it at a much higher price or lease the property for a monthly income. Factors to consider for either venture are relatively similar. Whichever side of the investment property fence you wish to subscribe to, there will be attendant risks. Be prepared to counter them with foresight and strategies if you wish to succeed.

Below we list down a few important considerations you must pay attention to before setting any real investment in motion:

1) Look for areas with perceivable growth

Areas situated near transport hubs, universities, or business districts tend to attract tenants looking for accessible and convenient rental accommodations. Map out these areas and list down their respective advantages and disadvantages. Weigh each piece of information carefully until it is time for you to decide.

2) Make sure your goals are achievable

Investors are prone to grand ambitions, but if you are still new to the game, it is better to keep things simple and feasible. Are you content with regular rental revenue or would you rather go big and earn quick capital? You need to know what you want to achieve when purchasing an investment property in Canberra. Whether you are thinking long-term or short-term, depending on your goals, there is an appropriate solution for every approach.

3) Set your budget

Lay out a budget plan and determine how far you would spend for a potential investment property. How much will be charged to savings? How much will go to mortgage? Take miscellaneous costs into account including fees and possible repairs. Cover all areas likely to incur a cost.

4) Be prepared to do the legwork

Unless you enlist the help of an experienced buyers advocate or agent, you may need to collecting information and go through listings yourself. If you think it takes too much time to do research and compare data, you can always delegate these tasks to a competent buyers agent. They will even talk to property owners, negotiate or schedule site visits on your behalf.

5) Focus on functionality

Investors who purchase investment properties for long-term use should set aside aesthetics and style and prioritise a tidy and functional property. Tenants will hold rental properties to a certain standard, so landlords have to do their part and ensure the place lives up to expectations. Does the property have the capacity to withstand natural calamities like hurricanes or earthquakes? A property's durability is a serious consideration.

Be mindful of the well-being of future occupants and you will be able to lease out the property for as long as possible. Investment properties are subject to the preferences and goals of investors. Your priorities as an investor in the Australian Capital Territory will play a crucial role and may affect your chances of succeeding. For more information about investment properties, visit www.canberrapropertysolutions.com.au/buyers-agents-in-canberra.