Buying an investment property
There are many reasons why investing in property continues to be a popular choice for Australian investors. Since 1993, median house and unit values have increased by 412% and 316% respectively, providing Australian homeowners with a significant wealth boost.
Some things you need to consider when investing in property:
- Deposit – where are you getting the deposit for your investment property purchase? Do you have savings in cash, or will you use equity in your existing home?
- Suburb – Look for areas where high growth is expected, so there is potential for capital gains. Ensure public transport is easily accessible and the neighbourhood is safe.
- Rental yield – Look for areas where rental return is high in relation to property value.
- Vacancy rates – Find out about the vacancy rates in the neighbourhood. A high vacancy rate may indicate a less desirable area, which could make it harder to rent the property out or sell it in the future.
- 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.