If adding to your real estate portfolio is on the horizon, our latest blog outlines what to look for in an investment property in Brisbane.
Whether it’s your first time diving into the investment market, or you’re returning once again, it’s handy to know what to keep in mind.
Check out the blog below for our tips for beginners, important things to consider before signing the dotted line and whether or not you can live in an investment property.
Things to Consider When Buying an Investment Property
- Property condition:
One of the most important aspects to look at is the condition of the property. It’s best to opt for a property in relatively good condition that requires very little work or ongoing maintenance. If it’s going to cost you long term monetary pain, it may not be worth the trouble.
- Rental yield:
A property that provides an excellent rental yield is a great short-term and long-term investment. If you have a mortgage, the higher the rental return is, the less you’ll have to contribute towards repayments.
- Long-term sale return:
Invest in a property that will provide a hefty long-term sale return (should you choose to sell in the future).
Investment Property Tips for Beginners
- Seek professional help:
Buying an investment property is a big financial commitment, so it’s a good idea to ask for help. Talk to your accountant, a financial advisor and a property advisor to ensure you make the right decision to suit your circumstances.
- Do your research:
Research the area you want to invest in. Talk to local real estate agents about the current market and local trends, and go online to view property information and suburb profiles.
- Go over your finances:
It’s important not to overcommit financially. Determine whether you can afford to own, manage and maintain an investment property before you sign a contract. An experienced professional, such as a financial advisor, can help you work out your budget.
- Inspect the property:
It is crucial to see the property you are buying in person. Take someone with you (either a family member or friend) and check the condition of the property and what maintenance is needed.
- Rental price:
Do some research so you understand the rental income you are likely to achieve. A good place to start is by searching for similar rental properties in the same suburb on websites like realestate.com.au or domain.com.au.
- Investment strategy:
Do you have an investment strategy? Are you hoping to make money and sell quickly or to hold on to the property for many years or decades? If you are buying a property to negatively gear to reduce your tax, then a property you would buy is as close to equally geared as possible. If it’s a long-term investment, then being equally geared is important as well as capital growth.
Can I live in my investment property Australia?
- If you choose to live in the property is has to be changed from an investment property to your principal place of residence.
- Expenses won’t be tax deductible as it will be your home.
- You may be entitled to some capital gains tax exemptions – check this with your accountant.
- You are able to live in the property and rent part of it out. If you opt for that living arrangement, you will only be able to claim part of the expenses that relate to the rental income. More detail can be found on the ATO website here.
What to look for in an investment property Brisbane
Looking to buy, sell or rent property? With a professionally driven team and proven track record, Northside Realty are determined to get you the highest price. Contact Northside Realty today.