How do I buy a solid investment property?
No one wants to buy a lemon.
All property investors want to make a solid purchase that sets them up for future success. You want to buy the right house at the right price. But how do you make that first step with full confidence that you’re making a wise choice?
Some common questions we hear are:
- Am I in a position to invest?
- How do I know if I’m getting a fair price?
- What type of property should I buy?
- Where is the best location?
It’s a numbers game!
Firstly, you need a good handle on your own numbers. Getting a comprehensive understanding of your financial position is where you need to start. What is your borrowing capacity? How will changes in interest rates affect your ability to service the loan? What are your goals? Is this a long or short term investment for you?
Next you need to understand the numbers of the property you’re interested in. What’s the capital growth potential? What are comparable properties getting in rental return? What are rental occupancy rates in that suburb?
Do your research on capital growth potential
You might be wondering if you should prioritise capital growth or higher rental yield when looking at investment opportunities. It’s a balancing act and your individual goals will always inform what is the best strategy for you.
Both are important. But solid capital growth will allow you to leverage equity and build your property portfolio at a faster pace.
The median Australian home has grown in value by 6.8% per year over the past 25 years. Buying and holding onto a home is generally a safe strategy, but of course some properties will appreciate at a faster rate.
So do your research to make the best decision. For example, houses generally outperform apartments. The past year has seen the largest rise on record of house prices, with houses in Australia increasing by 27.5% and attached dwellings (i.e. units, townhouses) increasing by 14%.
Get expert help
A great way to get more confident in your property investment decisions is to access the knowledge of a seasoned professional. At Inspire Realty, we live and breath property. By doing all the research for you, we help guide you to make informed decisions and get you better results. Our contacts and experience allow us to negotiate the right price and even find excellent off-market opportunities for our clients.
It’s important that you weigh up your options to choose the best property for you. We want to see you make solid investment decisions and build a profitable property portfolio. Let us help you invest like a property pro!
Schedule a discovery session to find out how we can help you.