Buying To Invest

Buying a property to rent out is a popular form of long-term investment here in Australia. Investing in property can turn bad, though, so it pays to make sure you’re buying a house that will appreciate in the long-term, as well as yield good rental dividends.

Moneysmart offers some tips on how to identify a good investment property:

• Familiar markets. Consider buying an investment property in an area you are familiar with as it will take you less time to research. Check recent sale prices in the area to give you an idea of what you can expect to pay for local properties.
• Growth suburbs. Look for areas where high growth is expected, where there is potential for capital gains.
• Rental yield. Look for areas where rents are high compared to the property value.
• Planning. Find out about proposed changes in the suburb that may affect future property prices. Things like new developments or zoning changes can affect the future value of a property.
• Attractive features. Look for investment properties that will appeal to as many people as possible, like a second bathroom, lock up garage or nearby shops, schools and transport.
• Wide appeal. Find a property that will attract more than one segment of the rental market such as singles, couples, young families or retirees.
• Low maintenance. Keeping costs down is important. Older homes, or those with features such as a pool or extensive landscaping, may cost more to maintain.

Funny enough, these are exactly some of the points we consider when choosing where to build our residential developments. We’ve already done the hard work for you!

Other helpful links:
Investing and tax Investment Lending explained 5 most popular tax minimisation strategies How Investing in Property Works