If you’re an investor looking to capitalise on the current market conditions, check out these top tips.
1. Align yourself with a good property management team.
This is especially imperative if you’re buying interstate and don’t have the capacity to be hands-on in the leasing of your investment property. A pro-active property manager will identify risks early and have a clear, constant stream of communication to ensure your investment is running smoothly and at its peak performance.
“The right property manager should be pro-actively involved in finding good tenants, identifying risks early and established clear communication channels with you.”
2. Get to know the property.
Before signing up to an investment it’s best to physically inspect the property and familiarise yourself with it. Photographs don't always tell the whole story. Also take the opportunity to get an understanding of the surrounding local community and amenities.
3. Have contingency plans.
Having a long-term strategy in place to address unexpected challenges is a smart move. Consider interest rate rises, fixed mortgage terms, maintenance costs and vacancy periods.
4. Don’t lose sight of the other fundamentals.
Vacancy rates are a big factor you should look into when purchasing an investment property but you should also pay close attention to the other metrics.
The demand for rental properties, rental yields and capital growth are great metrics to familiarise yourself with and stay abreast of in the long term.
Location is always critical, so make sure you research the local infrastructure including any transport links and future plans.
A great place to stay up to date with this research is by using our suburb profiles.