Investing in property requires a deliberate and calculated approach together with a clear strategy.
Although there are no hard and fast rules to property investment there are some actions you can take to improve your investment performance. There are four areas worth considering before you take on the responsibility of an investment property, each designed to maximise your return, drive growth and make your investment worthwhile.
1. Research your market and location.
If you are looking to rent your property, location is everything. Before you buy it pays to get to know a little more about the area you are interested in. That includes finding out more about the rental market and your prospective tenants. It is also worth looking at the competition and the homes already available to rent. This will give you an idea of the average rent and type of property the area’s tenants are interested in.
2. Don’t underestimate the cost of ownership.
Buying a new home can be more expensive than you think. If you need to arrange a home loan you will need to factor in arrangement fees, stamp duty and all of the other costs associated with purchasing a new home.
3. Improve your credit rating.
Reducing your reliance on credit cards and loans is not only good for your cash flow, it could help improve your credit record and make it easier to secure investment loan in the future.
4. Yield is king.
As every successful property investor will tell you, your yield, or return on investment, is key. Before you buy any property, you should do a few simple calculations. These should cover the following areas:
- Your projected annual rent
- The home purchase price
- Your initial acquisition costs
- Your initial deposit
- Your projected interest charges from any loans or mortgages
- Any expenses incurred in securing tenants, maintenance and administration
- Any tax you will be liable for as a result of your investment
To find out more about GW Homes current investment opportunities, please contact the GW Homes team on 3393 1399 or fill out the contact form here.