My Top Tips for Purchasing an Investment Property!
Finding the right location
When purchasing an investment property, it is important to think about exactly what you are needing to achieve from the investment. In Toowoomba, We do find homes on the Eastern side have good capital growth, whilst homes on the Western side attract higher yields.
Opt for low maintenance
When purchasing an investment property, I find it is always important to opt for a low maintenance property. A well built, low set brick home will have much lower maintenance costs than a timber home on stumps, which can be susceptible to termites, wood rot, a full exterior paint and potential mould issues, whilst a timber character home can really appeal to prospective tenants with its charm, it is important to factor in the additional expenses for upkeep.
Purchasing a home that is attractive to tenants
There are a few things quite high on tenants lists, just to name a few, secure fencing, air conditioning, a dishwasher and a home in the right schooling catchments. We do also find, homes that have had recent cosmetic improvements tend to achieve above market rent with minimal vacancy period.
Purchasing a home that is attractive to tenants
There are a few things quite high on tenants lists, just to name a few, secure fencing, air conditioning, a dishwasher and a home in the right schooling catchments. We do also find, homes that have had recent cosmetic improvements tend to achieve above market rent with minimal vacancy period.
Find a good property manager!!
I cannot stress this point enough, it is important to find a property manager that suits your needs and is also very experienced, thorough and organized. A high quality property manager can also give advice on what improvements can be done to increase your return, whilst a property manager with poor communication skills and a lack of industry knowledge can be absolutely detrimental to the performance of your investment.
Speaking with the selling agent about marketing prior to settlement
One thing that a lot of investors are not aware of, is the fact that the moment your contract goes unconditional, you are in a position to sign a management agreement with your property manager of choice. This way, you can initiate advertising, open homes and ideally have a tenant ready to move in about a week after settlement. This way, you can minimize your lost rental income. I always suggest leaving a week from settlement to availability date as this will allow your property manager time to get in and complete their checks and ensure the property is ready for the tenant. This will also allow for any possible delays in settlement. It is important to speak about marketing whilst at the contract stage, without these special conditions written into the contract, you may be limited on marketing options until settlement.
Do your research!!
Prior to purchasing an investment property, I do recommend speaking to your accountant, conveyancer and mortgage broker or banker. They will be able educate you on things such as negative gearing, capital gains taxes, special conditions and also finding the right mortgage to suit your needs.
– Grace Hilder, Director of Property Management
