Rent and Buy
Many property investors choose to remain tenants themselves. If you are thinking about becoming a landlord, here are a few basic principles to follow in making an investment decision.
Establish a strategy
Your motivation will influence the type of property you purchase. Are you looking for solid capital growth or good rental returns? Your reason for investing will affect whether you might choose an apartment in the city rather than a family home in the outer suburbs, for instance.
Set your own limits based on what you can afford. The regular repayments you will be expected to make must sit within the realities of your personal and financial situation?
Secure the right finance
While interest-only products tend to suit a lot of investment situations, consider the range of options available and secure independent advice before taking on any finance.
Know the neighbourhood
Do some investigation. This does not have to be the neighbourhood you live in. Suburbs and towns with a vibrant entertainment sector, employment opportunities, good transport, a selection of schools and open space generally provide good opportunities for capital growth.
Know your property
Enlist the assistance of the LJ Hooker team where respected professional real estate agents have sound local market knowledge. Research similar properties. Try to re-visit a property at different times as well as several times before making your final decision.
Find the right tenants
Just because you are a tenant, that doesn’t mean you will know how to find the best tenants for your own place, not will you know how to best manage your investment property as the landlord. Engage a qualified property manager who will ensure maximum and trouble free return on your investment. Select the wrong tenants through inexperience and you may be very disappointed.