Interest rates are low and property prices are affordable, two factors that make the prospect of buying an investment property more inviting. However, if you’ve never invested in bricks and mortar before, then selecting the right property can be a little tricky. But, don’t let this put you off.
Your main focal points when looking for the right investment property, apart from the value, should be location, the age of the property, it’s condition and any improvements that have been made, as these are all drawcards for potential success.
Investors looking to make a strong capital gain typically buy property in inner-ring suburbs that are within 10-kilometers of the central business district (CBD). These properties are high in demand due to them being situated close to work, entertainment, eateries and transport. While the purchase prices for these properties are usually more than those situated in regional areas, the value of the property generally doubles every 8 to 10-years, making them viable investments.
Close proximity to parks and leisure areas, such as bikeways and walking trails, as well as universities, schools and shopping precincts are all desirable attributes. Entertainment and cultural areas, such as art precincts, are also drawcards for renters.
New developments or property that has been recently renovated are more attractive than older properties. In addition, property that looks aesthetically pleasing and has street appeal often attracts greater interest, and many tenants want a home that is inviting and easy to maintain.
Properties that include modern conveniences, have natural light in bedrooms, excellent ventilation and good security are more favourable. Desirable properties are compact, but give the tenant a roomy environment with open plan living spaces.
Are you seeking to buy your first investment property, but are not sure where to start? Then contact eChoice, our brokers have access to 100’s of products, so we’ll help find you a competitive mortgage rate.