Top 6 Tips For Buying Your First Investment Property

Purchasing an investment property is a trend that is catching on in Australia. If you are here, there is a very good chance that you’ve decided to purchase your investment property. Whether purchasing your first investment property or the last, it requires a very good skill to look for a property capable of giving good returns in the future.In this article, we’ve put down some of the most useful tips that can help you take a stable step towards securing your financial future by purchasing an investment property. So let’s get started!

Look for many investment properties

Amateur investors tend to look at one or two property sites and purchase one from them. This way they end up paying more than the actual cost of the investment property. Hence it is advisable to broaden your search for a suitable investment property to get a better understanding of the property and compare their pro and cons. Then you should purchase a property that costs what its actual worth is and will help you get good returns.Also Read: 4 Important Key Points To Consider Before Investing In A property

Carefully Research the Location

It is quite a skillful task to know about the real estate market even if you’ve been residing there for a long time. So it is wise to invest some time to research the area and see how it’s likely to give returns in the future. Moreover, it is more important to research the area more if the property is located out of your usual buying area. Look for the chances of whether the location is likely to do good in terms of rental returns and will it prove to be a solid investment choice for you.Also Read: A Brief Guide To First Home Super Saver Scheme

Don’t rely on real estate agents

It’s a number one rule not to believe a real-estate agent whatever they say. Most of the time, they tell you the half-truth to pressurize you to finalize the deal. They may tell you this is the best investment property in the town and there are other good offers for this site. Do not rush and do thorough research yourself and it’s wise to consult a buyer’s agent to take their honest opinion about the investment property you want to buy. Remember do not rush to buy property otherwise you will face grave issues later on.

Don’t forget to get a building and pest inspection

Most of the new investors invest in a property after checking the building or the house superficially. They do not consider doing a pest or building inspection to see if there is any problem in its foundation or is it infected with termites. They face the consequences later on after they own the property. So it’s important to hire a building inspector and be completely sure that the property meets the construction norms and does not have any hidden faults so that it does not cost you later.Also Read: First Home Loan Deposit Scheme

Don’t make an emotional decision

Most of the new investors make an emotional decision when they decide to buy their first investment property. In this way, they pay more than what the property is worth. When we tend to get emotional, we often make poor financial decisions and forget that the objective is to get good investment returns. So keep in mind to be rational when purchasing an investment property like you would be when investing in the stock market.

Define your investment goals before you buy a property

Many people do not consider this to be important at all. Whenever you head out to purchase your investment property, it is important to chalk out your investment goals and financial needs. After this when you look at a potential investment property, look at whether that property will be fruitful in achieving the goals you’ve set or not. For instance, if you want instant cash flow, you should avoid looking for a property that is in a rural or suburban area.Likewise, if you want a passive income, avoid investing in a negatively geared property. Decide to purchase a property that lines up with your financial goals the most.

Conclusion

These are some of the most important yet most sidelined tips that most of the new investors forget before they decide to own an investment property. Always remember, research is the key. Good luck, purchasing your first investment property!