Many investors look for property to offset their income tax, to have a long term asset, they like dabbling in real estate or they want to secure their child’s financial future.
Whatever the reason for buying an investment property, doing the right research is vital before signing a contract.
Investment property check list:
1. Talk to a financial planner to determine how long you ideally want to own an investment property and what sort of return you could potentially make. No-one can predict the future with absolute certainty but you can have a calculated estimate.
2. Know the area well before investing. That way, you’re far less likely to pay too much for a property and, depending on the vendor’s reasons for selling, you might even be able to secure a quick sale at a reduced price.
3. Consider zoning potential. For example, an investment property on a large block could possibly, be rezoned for multiple dwellings. You may not be interested in rebuilding but a future investor may be and could be prepared to pay top dollars for the opportunity.
4. Look for special features that may make your investment property extra worthwhile. Near water, a park or a golf course, for example, add to the amenity of an investment property.
5. Aim for an area with consistently low rental vacancies. This means there’s likely to be renters out there right now ready to move in and when they eventually decide to move, your vacancy period is likely to be short.