IS NOW THE RIGHT TIME FOR YOU TO BUY AN INVESTMENT PROPERTY?
IS NOW THE RIGHT TIME FOR YOU TO BUY AN INVESTMENT PROPERTY?
If you have been thinking of taking the plunge and becoming a property investor then now is the ideal time to enter the market. The combination of low interest rates with the long term potential for strong future income on an investment and capital gains present ideal conditions for property buyers to get into the market. If you have the finances to buy 2016 will provide some great opportunities to buy that first investment property.
BUYING YOUR FIRST INVESTMENT PROPERTY – TIPS FOR SUCCESS:
Put in the legwork
You are investing a lot of money, so don’t take unnecessary risks by winging it. Do your research on sites like realestate.com, domain.com.au, myrpdata.com and get ready to enter the investment market with a bang in 2016
Ensure your finances stack up
Speak with your broker before you begin stalking real estate websites and viewing open homes. The right time to buy your first property – whether it’s a home or investment property – is when you have your finances in order.
Cashflow forecasting
Your accountant can provide you with a detailed cash flow report over a 10 year period, providing various scenarios you should take into consideration with your decision making. Important factors like, out of pocket costs, interest costs, depreciation, tax minimisation and capital growth.
Buy where tenant demand is greatest
Properties close to leisure facilities, schools, parks and gardens and transport, are always in demand and as an investor you need to pay attention to the location. Check the property data for the area you are looking at paying attention to vacancy rates, median rents and rental yields.
Invest for the long term
You want to be in the market for the long term, which means there is no point trying to predict the next boom. If you do this, chances are you’ll miss it. It’s far better to look for quality stock that will always be in demand, rather than hoping to cash in on the ‘next big thing’.
Join us next month for our FREE rental property seminar. For further details and registration go to our Events & Promotions page.
DATE: 15th November at 6.00pm Bacchus Marsh Office