A good investment property is one that leases quickly and for a good rental return. To ensure that your property is leased quickly, it needs to match what tenants are looking for. Some of these things include:
· Heating and cooling options - things like ceiling fans, gas wall heaters, split systems, ducted reverse cycle air-conditioning. Ideally you should look for at least ducted cooling in your potential investment property.
· Storage - particularly built-in robes are a key point that tenants are looking for. If they are coming from a property with built in robes to one without, then buying wardrobes is a major expense that most don’t want to consider. Also a good-sized linen cupboard is highly desirable.
· Four bedrooms - depending of course on the area that you’re looking to buy your investment in, but in family oriented areas, four bedroom homes are in huge demand and achieve a much higher rental return. If it is in your budget, then we highly recommend looking at this option. Of course, closer to the city, your demographic is generally young singles so the four bedroom option is not so crucial.
· Safe, quiet neighbourhood - when you’re looking to buy your next investment, take a good look at the neighbouring houses - maybe do a drive-by at night time and/or on the weekends and see how much activity there is. If you want a high quality, long-term tenant, then a nice neighbourhood is crucial. You will still get tenants at the property, but they will all be short-term as they don’t want to stay too long.
What else should I consider?
It is extremely rare to find an investment property where the rental income covers the mortgage repayments 100% and even then, there will always be other expenses like maintenance and repairs. From our experience, the way to profit from an investment property is to hold onto it long-term to make profit from the eventual sale of the property. But the property needs to be well-maintained during its lifetime too - meaning you can’t allow the property to become run down.
Becoming an investor is a
long-term strategy, not a “get rich quick” scheme. Always speak to your
financial advisor to check your unique circumstances.
“Smith Partners Real Estate is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how this information relates to your unique circumstances.”
For further advice contact our friendly property management team:
Tim Hines
Property Manager
M: 0412 754 117
Emma Irving
Accounts & Leasing Manager
M: 0488 226 624
Email: rentals@spartners.com.au
Web:
smithpartnersrealestate.com.au
