What to look for in your first investment property
At a certain point in your life, you might start to think about the future. Not just what you’re doing in a couple of months, but the long-term. Investing in property can be a great way to set yourself up for a comfortable and enjoyable life after the work, but what should you look for before taking out an investment home loan?
It’s all about the right mix of ingredients coming together. With these pointers in the back of your mind, you can start off on your investment journey – who knows where it might take you?
Location is king
There’s a reason for all the television programmes about about – finding the right property in a good neighbourhood can make a big difference to how well your investment does over the long term. It’s not just about looking at property prices, either. You’ve got to have a closer look at what’s available in the surrounding area. Are there schools and parks nearby? Or infrastructure developments, public transport and shopping centres? All these things can have an influence over the the types of tenants you attract, and how quickly you can fill the property.
Can you afford it?
It’s easy to get carried away when house hunting, but there’s a key question to ask yourself: How much can I borrow? Your first investment doesn’t need to be the most expensive inner city townhouse – it could be a simple unit. Do your research and figure out what other properties are selling for in your preferred area. You’ll soon be able to spot a bargain and avoid taking out a property investment loan that’s a bit too big for your boots.
State of the property
The home doesn’t need to be perfect, but it should be in a decent condition. Look for low-maintenance properties that don’t need too much work done. It’s worth having a builder or property inspector take a look through and point out any areas that might need attention further down the line. If it’s a DIY project you’re after, remember: You won’t be living in it – and your tenants won’t necessarily be after all the mod cons!
