5 Tips to Consider When Choosing an Investment Property
Whether you’re looking to get your foot on the property ladder or looking for an additional property to add to your portfolio, there are many things to consider when choosing the right investment property.
1. Location, location, location
When selecting an investment property, location is everything. If you’re purchasing a house that could appeal to families, check that there are schools in your local catchment as well as day care facilities and parks.
If you’re purchasing a studio apartment, or one bedroom, that is more appealing to younger, business professionals, investigate transport options, particularly to central business districts.
Which brings us to the next point – parking.
Purchasing an apartment or house with parking can be more costly, but it can add value to a potential tenant and/or any prospective buyer (should you decide to sell in the future).
Parking may be important if your investment property has limited access to public transport, or if your property is in a high-density area where street parking is scarce.
Decide whether parking is make-or-break for you and your budget.
A lot of investors only focus on upfront costs when choosing their property. It is important to think about ongoing rates and fees that could affect your out-of-pocket expenses in the long-term.
Strata rates, council fees, and special levies could make your ‘dream’ investment property a financial nightmare. Do your due diligence and calculate the annual cost of these fees and management costs.
4. Ongoing maintenance
When maintaining a property, kitchens and bathrooms are at the top of the expense list. It’s important that you check the quality and durability of fittings to determine whether they’re suitable for renters.
The last thing you want is to fork out large, additional funds for maintenance, or worse – a renovation.
5. Check your finances
Investing in property might seem like a financially viable option, however, its important to consider whether your finances stack up. Consider that you may have weeks, or months at a time where the investment property is untenanted. Make sure you have access to additional funds to cover such costs.
If you’re looking for a competitive investment rate for your loan, why not look at Gateway Bank’s rates and fees. Alternatively, our friendly customer service team is here to help via phone or email, Monday - Friday 8am - 5pm.