If you’re getting into property investing, it’s important that you do your research. It’s tempting to race out and start looking at properties, but before making an offer on a place you need to do your homework and research the area, the local property market and the history of the property.
As an investor, you should think like a tenant. Your aim should be to purchase a property with broad appeal, e.g. a place with decent sized bedrooms, a functional layout and appealing kitchen and bathroom. Access to public transport and facilities such as schools, shops and cafes are a positive attribute. If you are buying a property to renovate it’s a good idea to select neutral colours and simple designs that won’t turn off potential tenants.
Make sure when it comes to buying an investment property that you buy with your head and not with your heart, you should treat the process as a business transaction. Don’t buy a place because you love it, or because you can picture yourself living there. Also don’t be impatient and rush into buying something just for the sake of buying something. Make sure the numbers add up. If you’re not making money from it, either from rental income or from capital growth, it may not be a smart investment choice.
It’s a good idea to set some timeframes and have a general idea of how long you plan to hold on to the property. Are you planning to buy a long-term investment and reap the benefits of capital gains? Or are you wanting to purchase a short-term investment in an area which is about to undergo subdivision or rezoning or from an area which might benefit from a major infrastructure project or a booming market.
Doing your research and having an investment plan will help you achieve your investment goals. If you’re thinking of buying a property, have a look at the Ethan Property Sales section of the website to view our range of properties for sale.