The Finance Architect
  • Home
  • Who We Help
    • I am needing to organise my finances >
      • Get Finance Fit
    • I am a First Home Buyer >
      • First Home Owners Grant (FHOG)
      • Stamp Duty Concessions
      • Guarantor Loans/Family Pledge
    • I am wanting to Refinance
    • I am a Property Investor
    • I am getting married! :)
    • I am buying a car
    • I am sending my kids to private school
    • I am needing some short-term $$
    • I am needing money - It's an emergency!
  • TFA CONNECT
  • Education Hub
    • Loan Features
    • Loan Types
    • Loan Process
    • Loan Document Checklist
    • Bridging Finance
    • Building & Pest Inspections
    • Construction Loans
    • Deposit Bonds
    • FREE Property Valuation Report
    • Lenders Mortgage Insurance (LMI)
  • Loan Calculator
    • Loan Serviceability Check
    • How Much Can I Borrow?
    • Stamp Duty Calculator
    • Complete Loan Comparison
    • Income Tax Calculator
    • P&I versus IO repayments
    • Basic Loan Repayments
  • Blog
  • Contact Us
    • Contact Details
    • Meet the Team
    • About Us
    • Credit Guide and Privacy Statement
    • Our Lender Panel
    • Client Testimonials
    • Our Business Partners
    • FAQ
  • Mentoring

TEN TIPS WHEN BUYING AN INVESTMENT PROPERTY

26/2/2016

14 Comments

 
Picture
1. What do you want to achieve?

Understanding your objectives is key to finding the right investment property. The actual property itself is never the end goal when it comes to investment – it’s the financial element that you’re really concerned about.

First and foremost, decide what your end goal is and then create a plan to get there within a realistic timeframe. Remember to review this plan regularly as your situation and the property market changes.

2. What type of property should you purchase?

Understanding what property is going to best work for your situation is key. It needs to be a property that will be in hot demand from renters and possible owner-occupiers down the track. It’s best to do your research to see what types of properties are renting quickly and what properties are staying on the market for longer periods of time.

3. Old or new?

It’s the age-old debate: should you buy a renovator’s delight, or something you can rent straight away? It’s great if it can be rented out as is, but potential to renovate should also be considered. The ability to add value to the property is a good tick, as it will increase rental returns. Don’t immediately write off a property just because it needs a paint job or the kitchen cabinets need to be replaced.

4. Location, location, location

Location is critical to performance. Things to consider when it comes to location include:

•       How far it is to the CBD or business area?
•       What is the proximity to schools?
•       Are local shops within walking distance, or will tenants have to get in their car to pick up the essentials?
•       Where are the public transport options?
•       What other amenities are close by?

5. What can you actually afford?

Always check your financials before deciding to purchase a property. Get pre-approval and make sure you have all extra costs available, including conveyancing, inspections and any taxes – and always ensure you have a financial buffer.

6. How to set up the purchase

When it comes to investing, it’s important to understand how to set up the purchase so it benefits you most. The entity should protect any existing assets and be tax effective. You can purchase in your name, through your super or through a trust, but always understand how the purchase will affect you and your family.  Expert advice will assist in maximising your benefit .

7. Features

You want to appeal to the highest number of tenants, so look for properties that offer that little something extra, like a second bathroom or a lock-up garage.

Also look at properties that appeal to many segments. For example, a lift may appeal to both retirees and a young family, as both will be looking to avoid stairs.  Just make sure the  benefits outweigh any extra costs.

8. Check your emotions at the door

This is not a home for you so there doesn’t need to be an emotional connection to it. It should always be about which property will give you the best return, not which one is most suited to your furniture.

9. Timing is key
 
You need to understand the market and the dynamics. While there are investment opportunities around most of the time, some market conditions are more favourable. If you don’t fully understand it all, ask for help.

10. Ask for expert advice

We can put you in touch with the experts you need to talk to when it comes to real estate and investment. This means accountants, real estate agents, lawyers and valuers. These people are in the industry and they’ll be able to guide you in your decision making.
14 Comments
Sara ghaffar link
29/7/2020 10:12:18 pm

Firstly i will appreciate your work that you do on this article. I am agree all your points that you mentioned here. Thanks for sharing it and Keep it up. bahriatownsphase7@gmail.com

Reply
Mehak link
30/7/2020 10:58:01 pm

Thanks for it. I am really inspire your work for the welfare of mankind. i am grateful to enhance my knowledge by telling about investment tips.

Reply
Darrien Hansen link
26/11/2020 02:28:20 am

Thank you for explaining how doing research can help you determine what kinds of properties are among the most popular. My wife and I recently inherited some money from my late uncle last month, and we'd like to use the cash to purchase some investment property so that we will be able to pay for our son's college fund someday. We'll be sure to find an expert that can help us make the right decisions.

Reply
Anthony Horowitz
24/1/2021 05:13:11 am

The investment tips are worth reading. The last point – Ask for the experts, from my point of view, is best. I always suggest the new investors to take help from experts. And also I want to state them visit InvestorHotSeat.com and take part in the Investor Pitch Competition event through Zoom webinar. You can find many companies raising capital to boost their business up. If you find any business suitable, you can also invest there.

Reply
Property Management Central Auckland link
27/1/2021 07:27:30 pm

Your article is quite helpful! I have so many questions, and you have answered many. Thank you! Such a nice and superb article, we have been looking for this information about ten tips when buying an investment property . Indeed a great post about it!!

Reply
Revolve Commercial link
9/6/2021 11:45:54 am

Great content and tips that every investor can follow through.

Reply
Louisiana link
7/8/2021 12:03:15 pm


Very much appreciated. Thank you for this excellent article. Keep posting!

Reply
Karen link
19/10/2021 02:53:02 am

Awesome! This is a great article. Thanks for sharing, anyway.

Reply
galuapluservices-2 link
19/11/2021 09:07:16 pm

Great article! Thank you for sharing this informative post, and looking forward to the latest one.

Reply
Buying an Investment Property link
14/12/2021 02:49:53 pm

The webpage is fantastic. This site has a great deal of useful information.

Reply
Capital Properties link
1/2/2022 03:33:57 pm

Nice content and tips that every investor can follow through it.

Reply
Investment Home Loan link
13/7/2022 06:45:31 pm

I love reading your article. This is such an amazing post.

Reply
Andrew Wheelock link
30/7/2022 02:49:51 am

The entity should protect any existing assets and be tax effective. You can purchase in your name, through your super or through a trust, but always understand how the purchase will affect you and your family. Thank you for making this such an awesome post!

Reply
Investment Home Loan link
6/8/2022 11:12:44 am

Great tips provided. Thanks a lot.

Reply



Leave a Reply.

    Dale Wilkinson

    Home Loans
    Refinance
    Equity release
    Investments
    Car Loans

    Categories

    All
    Broker
    First Home Buyer
    Home Loan
    Investors
    Loan
    Mortgage
    Purchase

    RSS Feed

contact us

The Finance Architect
Office: 3/2-16 Warner Street Oakleigh VIC 
Phone: 0411 600 210
Email: info@thefinancearchitect.com.au
Dale Wilkinson is a credit representative (450039) of Buyers Choice Licencing Pty Ltd ACN 626 172 281  (Australian Credit Licence 509484)

RECENT ARTICLES

  • What’s The Secret To Buying My First Home?
  • ​Five Things First Home Buyers Need To Know
  • How To Pay Off Your Mortgage Faster
  • 10 Tips When Buying An Investment Property

SPEAK WITH AN EXPERT

Clink the link below and receive a phone call to discuss your financial needs directly


Book a phone call