Borrowers warned to brace for across-the-board mortgage rate increases
We all get extremely excited when it comes time to start looking for our “First Home” or “investment property” but there are several factors that are often overlooked. Ensuring that you select a good investment property should be your primary goal to ensure a greater return in the future, not only in capital growth but also in the form of rental returns.
Property market has cycles and may rise or fall during certain phases of the cycle. It is very important for an investor to know what is happening in the cycle for certain areas prior to purchasing the investment property. Location, Location, Location! It is integral to acquiring a good investment property. There are several factors to consider, desirable and undesirable factors. Remember to keep in mind amenities when locating your perfect investment property. Schools, public transport, post offices, libraries, parks, medical centres, shops, shopping centres, restaurants, café strips, beach, RSL clubs and so much more. Australia is very much an outdoor lifestyle so investigating the amenities in your area will have a huge impact on your capital growth and rental return.
Some of the best places to invest are those experiencing population growth, such as the Gold Coast. As a population grows so there are improvements to infrastructures and desirability. You should also consider appropriateness of the property for the age of renters that you will attract. For example, a property in an area that is known prominently for its older residents, will not attract a young family. Researching and discovering the demographics of your area is important to choosing a good investment property.
When deciding on an investment property it is essential that you make the choice based on research facts and finances instead of property appearance and emotion. Think with the head instead of the heart. A bad investment decision may result in lower than average capital growth, untenanted periods and rising monthly costs to maintain the property.
Ensure the best return on your investment by always researching all the possible scenarios.
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