Buying your first investment property can be a daunting task, but if you follow this handy list of tips your pre-purchase property inspector wants you to know, it’ll be so much easier!
Of course, you want the best return for your investment, but if you’ve got the finances sussed, where do you go from there? What kind of property should you buy? Where should you look? What are the things you should avoid? Read our top tips including how investment property inspections can help you secure the perfect property and avoid hidden problems in the future.
What kind of investment property should you buy?
You’ve made the decision to invest in a property – now comes the hard part! You’ve got to choose a property. Easier said than done, right?
Whether you choose to go for an apartment or a house, you need to remember a few key issues before you settle on something. It’s not like you’re searching for a home for yourself, where you’ll be more willing to deal with any foibles a house may have because it’s in the right location or it might offer you the lifestyle you’re after. Your tenants won’t necessarily feel the same way about the property as you will. Instead of looking for something unique, opt for something classic with a solid build. Newly renovated properties are particularly attractive to prospective tenants.
You also want something very low maintenance. Typically, small properties are the easiest to maintain. They also run a much smaller risk of containing unseen faults like leaking roofs, unsound structures, asbestos or serious damage. It’s also about how easy the property is to maintain, and whether it’s been properly looked after previously.
What should you avoid?
When considering a new investment property, most real estate agents will recommend to look for something about 15 to 20 kilometres from the city centre, with good land value and vacancy rates below 3%. Avoid properties commonly known as ‘fixer-uppers,’ apartments with huge body corporates, and suburbs or neighbourhoods that are rundown. You should also avoid brand new properties, as these depreciate in value over time much more quickly.
Regardless of the suburb or property you ultimately choose, protect your investment by booking a pre-purchase property inspection. An impartial, professional opinion from an inspector with decades of experience gives you the best chance of choosing a property that won’t give you unforeseen problems down the track.