Purchasing Investment Property
Generally if you are planning on living in a house, one of the first questions we ask is about your lifestyle. Things like what activities you like and where you work so we can make sure you find a house in an area that will work for you.
When we start to talk investment property, you need to be a bit broader and think about what’s going to suit a potential tenant. Since the tenant will be your long term customer, you need to ensure you have something they will want, not necessarily what you want.
Unlike a lot of the companies on the web that offer real estate investment seminars or schemes to get you buying off the plan or renovating for profit, our philosophy is much simpler.
In order for us to help you invest, we ask that you have either contacted an investment advisor or have worked out your investment goals already. When you come to us, we can certainly present you with the sales and growth figures and statistics of all the suburbs, but it’s important that you have thought about and have clear investment objectives.
If you come to us and say, look here’s what my goals are:
- I would like a property that’s going to provide a 5% yield
- I want an area where the property is likely to be consistently tenanted
- I want a house that doesn’t need any major renovations at the moment,
- I want to be centrally located close to schools, transport, hospitals
- I want a depreciation report done for tax purposes once we agree on the property
- My budget is $550k
- I want a suburb where the ave 10yr growth rate is x%
This is pretty clear for us and allows us to go off and find a property. We can present you with a few different options and come back to you with the data for each.
This will allow you to make a decision based on independent data, noting we don’t take any commissions from anyone other than what you as a buyer invest in our search.
While new houses offer the benefits of lower maintenance and higher depreciation, research we have done shows these don’t often stack up as an investment in this region.
Some of the reasons for this are that there is a greater supply of new land releases and if you buy in one of these developments, you are unlikely to achieve any reasonable capital growth until the whole of the development area has been built. This may take 10years.
We prefer to look at the proximity to infrastructure and the scarcity of this property type. Things like:
- Close to a popular school or university
- Beachside suburbs, near shops, no more vacant land within the suburb
- Walking distance from shops
- Easy access to freeways
- Size of the land
Once you’ve had a think about your investment goals, phone us for a chat and we can see how we can help you invest in the Sunshine Coast.