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No Fuss Home LoansBlogUncategorizedWhat to look for in an investment property

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What to look for in an investment property

Posted 7 months ago

Buying an investment property can be a clever way to build wealth for your future. There are government incentives that make this form of investment great for mum and dad investors – such as the potential to claim back losses as a tax deduction.

So, how do you go about finding the right property for your needs, particularly if you’re not an experienced property investor? In this article, you’ll find some insights about what to look for in an investment property. And remember, when you need the right finance for your investment, we are here to help!

Capital growth potential

Capital growth is the increase in value of a property over a period of time. Investors use a range of strategies to build wealth, and looking for the properties that are most likely to experience significant capital growth, is often high on their radar.

So, how do you find an investment property with solid capital growth potential? Look for locations and suburbs experiencing economic growth. Economic growth creates jobs, which brings more people to an area, which may flow through to the property market via increased demand for housing. Greater demand means more chance of capital growth.

Next, be sure to choose an investment property that is close to amenities such as schools, shopping centres and public transport – when an area is experiencing economic growth, these properties will be in the most demand.

Rental returns

Some investors choose to focus on properties with a high rental yield, rather than just looking at capital growth potential. The rental yield is the rate of income return compared to the costs associated with the investment property. It’s typically expressed as a percentage, and may be calculated as a gross or net figure.

Investors who are following a rental yield strategy will typically look for areas where rents are high compared to the property value. Talk to us as we have access to have access to exclusive property tools to help you locate a suitable area.

Low maintenance costs

As an investor, it’s wise to opt for a low-maintenance property. They not only cost less to keep, but they’re less hassle too. Units can be easier and cheaper to maintain than old houses for example, but keep in mind you’ll most likely have to pay body corporate fees.

Ways to add value

When choosing an investment property, ask yourself whether there is room for improvement, or ways to add value. You might not renovate it right away, but when you do, be sure to do plenty of research to find out what’s in high demand. Ask your local real estate agents what kinds of property features resonate well with tenants and future buyers in the area.

Choosing the right investment property requires careful research and planning. Luckily, one area you don’t have to worry about is finding the right investment loan for your specific needs. We can take care of finding you a loan product that matches your financial circumstances, while working with your investment goals.

Please call us today on 0413 924 401!

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“I met Kathy in 2007 when I bought my first property. She took time to educate me on the process of buying and provided detailed information on different types of home loans, which made my decision making easier. She was efficient, professional, knowledgeable and friendly. Since then I have bought number of other properties for which Kathy has successfully negotiated home loans for me.”

Christian – Penrith

Kathy has helped refinance my home loan previously and has now helped me sort out an investment property loan. Kathy keeps me up to date with interest rate trends and deals every month with her monthly emails. I have found her to be very professional and very knowledgeable in every aspect of mortgage broking. She is more than willing to pass on information about her own investment strategies and has provided me with a contact to source my first investment property. She makes investment easy and is easy to communicate with. I would highly recommend Kathy to anyone who is looking to obtain or refinance be it for your home or investment.

Dougal Brown