Whether starting a family or just wanting to change the landscape, buying a home is one of the most significant decisions you have to make in your life. But does it make sense to invest in property? Definitely, it does! Property investments can yield higher returns than other investment opportunities in Australia. But only if you know where and how to invest smartly. There are many advantages to investing in property in Australia. Some of the main reasons people invest in properties are:
- Return on Investment: You can earn constant returns via the rental revenue of your investment property. Investors, especially the first-timers, can profit immensely from it.
- Safety: You are safer when investing in real estate with a relatively fixed rate of return. The stock market is riskier than that. It also reduces market volatility because it takes a long time to liquidate property assets.
- Tax incentives: Property investments can deliver a variety of tax incentives. You can claim depreciation of your investment property for tax purposes. You can also apply to the Australian Tax Office (ATO) to change your tax credit. This allows you to reduce your tax each time you receive your salary without waiting 12 months. By saving taxes, you can invest your money in real estate.
- Growth: Australia's property growth rate is steadily increasing. If the house you intend to buy is located in a good locality, the value of your property will increase significantly in the future. Enjoy capital growth even after retirement. The accommodation is also an excellent gift for children and grandchildren.
- Financing: Financing property investments are relatively straightforward. There are many investment loans for commercial real estate. Having property in your pocket will help you secure additional funding. You can connect more loans and buy more real estate with existing equity.
To ensure everything is going according to your plan, we look at some top things to check that you don't get sour lemons in your hands!
Check the property
Before deciding on a home, you need to know about its condition. You can accomplish some trials to determine why the owners are selling the property. The following is a list of what needs to be inspected.
- Building Structure: Examine the foundation and plumbing to ensure the wiring is in place and check the walls for moisture and cracks.
- Roof condition – subsidence, steel, wooden.
- If there are fences, they are at the border.
- Is there evidence of flood damage (due to rain or flood)? Is the area prone to flooding?
- Check if the switches are working. If not, there may be a wiring problem.
If you want to be more thorough (and should), consult an expert to assess the situation. Talk to an architect who can adequately confirm that the structure of the building is safe.
Check-in with the city's planning department
Checking in with the city’s planning department is a brilliant idea because they are aware of current projects and future initiatives they plan to undertake. This might provide you with valuable information about the area and how it will evolve in the future.
Many homeowners have avoided purchasing properties in regions near authorized high-rise buildings or commercial complexes by consulting their city’s planning department.
Know your neighbor
When visiting the property, look at the surrounding homes to see if there are any signs of problems for the occupants. Most public housing occupants are okay but sometimes can cause a lot of noise and turmoil.
Try to visit at different times of the day. Walk around the streets, talk to the people who water the garden, and start a conversation. Neighbors often love gossip!
Does the weather affect the property? Are there any wild animals that you need to be prepared for? Is the street generally quiet? These are other things you might ask your future neighbors.
Compare the costs of similar properties in the area
It's usually a good idea to compare the prices of other regional properties to see if you're getting a good deal on your home. This may be time-consuming and may need a lot of convincing because many property owners are hesitant to share that information.
You might also receive this information from the development council, although they may only have data on current trends or average expenses, for example. Hiring property consultants is the next option for obtaining such information.
Their engagement in numerous property transactions gives them knowledge of current market rates. Not only would this material be updated, but it would also be revised in some circumstances.
Check the different types of home loans
Before investing in property, it's usually a good idea to look for available house loans and the current interest rates in Australia. There are two compelling reasons to do so. The first is that if you discover that your ideal home exceeds the budget you set for yourself, you can still buy it with the help of a loan, ensuring that you do not give up on your ambitions due to a minor financial setback.
The second reason to look into accessible house loans is to understand better current market costs and how well the real estate industry is performing financially. You might have heard someone claim the market is down or that it is performing better than projected. Banks perform most of these computations, which are reflected in the loan issued.
Sure, a loan will be granted based on your financial standing, but there are certain areas where development is booming or lacking, and many banks are eager to lend or hesitant to do so.
With all of this knowledge, you'll be able to acquire the most rewarding deal in investing in property in Australia.
