Whether you’re buying property to invest, or buying a new home, having successful returns is always the question on a buyer’s mind. Property investment can be a tricky ball game, especially with an ever-changing market, leaving you with a million choices and considerations. Outlined below are several important factors to consider to ensure you walk away with a successful long term investment.
Having your home in close vicinity to transport, cafe’s, schools and unis, shopping precincts and entertainment hubs will do wonders for your capital growth/ rental demand and will be one of the best determining factors to your overall investment success. Buying close to the beach is another huge bonus that will help your property investment soar, as houses close to the water are always in high demand. Having your property located close to a Central Business District will be a smart move if the market profile changes, as the location of the investment will service renters/ buyers in a multitude of professions.
Buy & Hold
When it comes to buying property, this mantra may be one of the best credos to investment success. Instead of choosing to wait before purchasing a house or land, buying first and holding your investment can be a smart and calculated move that will have a great impact on your future returns. When it comes time to sell, you can use the equities generated to buy another property. While this idea may seem simple, it will require patience and a buffer to cover unexpected changes to your cash-flow, such as a change in your career.
Maintenance To Generate Rental Increase
Making small changes to your property can go a big way in terms of your rental costs. By consistently keeping your home in good condition, the avenue is open for increasing your rent agreement which will drive more revenue overall. The changes you decide to make to your home do not have to be astronomical. Something like a fresh coat of paint or a new shower may be the thing that takes your rent from $650 to $900 monthly.
The negative gearing strategy is one of the most popular investment strategies undertaken by buyers and can be used in conjunction with other methods like the buy and hold. The term negative gearing refers to when a property’s annual expenses exceed the rental income, though this leaves the investor with a loss, under this method it can be claimed under Australia’s current tax laws against their taxable income. The process of this investing is knowing you will not make money from generated rent, however, buy with the intention of cashing in on the properties capital growth over time, hoping the value will increase for a successful sale.
While the human race has yet to be blessed with an accurate reading crystal ball used to determine the future, seeking the right advice may help when investing long term. Trying to get an exact foresight into how the market may look in 5 years time is difficult and cannot be exactly predicted, however, the right team of experts, data tools and past research may give you clarity into the areas you are looking to invest in and give you an idea of how they may fluctuate in the future.
The team at iBuildNew can help you find the perfect investment property! Get in touch with us on 1800 184 284 or book a call for free, expert advice.