|Before purchasing an investment property it pays to do your due diligence.
First and foremost, you need to know what the property will receive in rent once tenanted. In addition to this, if you make improvements to the property, plan what they are going to cost and if this investment will be reflected in increased rental yield. The numbers stacking up are a very important factor in purchasing an investment property and really should be viewed as your number one priority before doing further investigation. In establishing rental yields, be sure to call on a professional property manager who specialises in the area.
Another matter to consider when purchasing a property is supply and demand. For example, if you purchase the property, how long is it likely to be vacant before you place a tenant in the property? Also consider future (foreseeable) work required such as new carpets and repainting. How much will it cost to bring the property up to a safe standard, especially considering that house WOF’s may soon come into play? Ensure that at the pre-purchase inspection you test all appliances and chattels that come with the property, as once settlement has occurred the repair bill may be at your cost.
|Investing in properties is typically a long game, not a short one! Check the local Council plans to see if any upcoming changes in the area may affect the value of your property? Also what factors will influence the tenant flow or demand long term?
Make a checklist of criteria that the property you buy must meet and then make sure you stick to your on rules!
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