What to Consider When Buying an Investment Property
Buying an investment property, if done in a smart way, can be an extremely beneficial and lucrative financial decision. Being able to get a strong return through a passive income stream is something that many Australians dream of. However, one must be smart in the way that they choose to invest. This means doing proper research into the location, the house itself, its previous rental and ownership history, among many other things. Here, Whitehouse Real Estate will break down some of the main things that one should consider prior to buying an investment home, as well as how our Sydney investment property and NSW rentals experts can help you make this leap.
Location: Property for Sale Northern Beaches
The first and most important thing that you need to consider is the location of the house. There is no point investing in a spectacular holiday home if it is in an area nobody goes on holiday! In thinking about location, you also should think about what type of investment property you are looking for. Looking for something that you can rent out at a relatively cheap rate but get guaranteed occupancy is likely to be in a different location to an expensive home that you are happy to rent out for only 6-8 months of the year to have decent return on investment.
Deposit
When purchasing a personal home, you can often get away with putting an initial deposit of between 5-10% on the property. This is very different for investment homes, where you will be required to put an initial deposit of somewhere up to 15-20%. Finding the right home with the right initial payment option will go a long way in ensuring you can make the most profit on your investment.
Property Management
Investment properties require you to be hands-on. How hands on you choose to be is up to you. In most cases, investment property owners will employ a property manager, such as those at Whitehouse Real Estate, to take care of everything. Our services cover general maintenance, repairs, finding the right tenant, ensuring the property is vacant for the fewest days which helps to ensure that the return on your investment is maximised.
Property Valuation
Getting a proper valuation on the property in which you wish to invest is a vital part of your investment process. A good property valuation considers several variables and can have a huge effect later on down the track in terms of rental prices, taxation, mortgage repayments and eventual listing prices.
Experts in Investment Property Sydney: Whitehouse Real Estate
If you are considering a property investment, the expert team at Whitehouse Real Estate can help you get started. From property rentals to the best property for sale Northern Beaches and beyond, we have the experience and local knowledge to help you make the right investment decision.
For quality advice on property investment and management, get in touch with us online or call us today on 02 9948 0666.
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