Robert Projeski shares his top 8 tips for finding a great investment property
Blogger: Robert Projeski, Australian Mortgage Options
Do your research and know what types of locations are suitable for budget and your strategy. There are some excellent online resources to showing average rental returns, property values and sales history for most areas in Australia.
2. Two plus two
The best buy is often considered the ‘two plus two dwelling’: two bedrooms and two bathrooms. Despite one-bedroom properties selling and renting quicker, two bedroom dwellings have double the capacity, making rental rises easier to afford.
3. Invest enough, but not too much
The money that you put into fixing up a property to attract renters may be your biggest downfall. Be careful if the property is going to take too much of your time and money.
4. Lifestyle factor
The surrounding lifestyle is always important. Spend some time in the area to make sure that you can afford to charge where people will pay a premium. Also look at nearby schools, shopping, transport and employment.
5. Talk to agents...
Speak to as many local agents as possible. Talking to a number of real estate agents in an area can give you an overall picture of the area, help you understand the growth potentials relating to the local economy and what areas potentially to avoid.
6. ...but take it with a grain of salt
However, sometimes the areas they tell you to avoid can still be good to invest in.
7. Consider tenant needs
Your renters are the source of your revenue and while higher rent may be ideal, remember that renters are primarily renters, meaning they will always be looking for lower rates in lifestyle centric areas.
8. Backup plan
With today’s uncertain economic climate it is important to have a backup plan or even an escape plan with the economy goes array.
About Robert Projeski
In the late 90’s, Projeski broke away from the banking industry with the goal of helping borrowers pay off their mortgages sooner. His formula worked and AMO is now considered one of the leading independent mortgage management firms in Australia, operating with the philosophy “we will show you what the others don’t want you to know”.
Their website is http://amo.com.au/