Purchasing a residential investment property can be challenging if you don’t adopt the right approach from the outset. However, it is possible to maximise rental returns and manage your expenses if you develop an investment strategy that incorporates these five crucial elements:
1) The best strategies for driving revenue growth are long term. If you are buying an investment property in the hopes of making a quick profit, you could be undermining your future earnings potential. Holding onto a residential address for a while can help you make the most of rising housing prices while also raising equity for potential future investments.
2) If you don’t know the dynamics at play in the neighbourhood you are considering investing in, find out. Speak to multiple property managers and estate agents to determine community demographics, dwelling vacancies and local rental yields. In addition, look at local planning approvals for dwellings and infrastructure.
3) Be on the lookout for properties that appeal to a wide range of renters, from young professionals, to families, to retirees wanting to downsize. Certain features, such as a second bathroom or garage, have universal appeal, so waiting to invest in a property with these assets can improve your chances of attracting suitable, long-term tenants.
4) Your credit history and liquidity are important factors in trying to secure finance for buying an investment property. Ownership of other dwellings can also affect the value of your loan and interest rate. Consulting with a financial advisor should help you get your personal finances ready and develop an investment strategy. Consulting a mortgage broker will help you secure the finance you need.
5) Seek the advice of a Buyer’s Agent/Buyers Advocate - we can advise you on the best approach to achieving your personal goals by ensuring that your criteria is met with each property purchase. With thorough due diligence and savvy negotiations, we can secure a property under market value, giving you instant equity and immediate capital growth.
Fulfilling your property investment plan with Property Home Base
Anyone can find a property to buy, but can they find the right property for your investment strategy? At Property Home Base we are confident that we can. We have two separate and distinct services that cover all bases when it comes to buying residential investment property.
To get started, we offer a free one-hour consultation, out-of-hours when needed, where our Buyers Advocate asks questions about your investment goals. During this consultation we explain our services so that you can choose which service provides a solution that will best support your property investment goals. Book a property consultation today!
This service is for investors that decide that buying an investment property in Melbourne and the surrounding area is best for their strategy. This flat fee service utilises our in depth knowledge and on the ground experience of the Melbourne market as well as access to off market properties
If you want to take the guesswork out of buying an Investment Property, then our Strategic Property Investment Service is for you. This service is backed by a cutting edge technology and an Artificial Intelligence that leaves nothing to chance for anyone wanting to invest in the Australian property market.