Where should I buy my next investment property?
It’s the age-old question we’d all love a crystal ball to answer. But when it comes to expanding your property portfolio, the answer is different for everyone. Don’t leave things up to chance; regardless of your purpose for expanding, gaining the right advice and making the right decisions for your own personal and professional circumstances is vital when it comes to your next investment.
While family and friends mean well, keep in mind that their own experience and advice may not necessarily be relevant to you. Conversations and learned experiences are great, but we’re seeing a very different market to possibly what they did when they purchased. Take it on board, but don’t let it be the only source of information when it comes to your future purchases.
Depending where you’re at in both your life and property experience, making the right decision about the next property you add to your portfolio may look different than your first, second or even tenth investment.
Gain appropriate advice from your financial team. When it comes to numbers ensure you’re well across your own financial situation and understand what adding another property means for you. If you’re not sure where you sit, make sure to ask.
What you’re comfortable with and able to spend on your next property must be well considered. What can you get for your dollar? Is there a need for rental properties like the one you wish to purchase?
Property location will always remain an important consideration. Availability and price in your ideal location may be a factor, so it may benefit to expand your search area slightly or consider somewhere different altogether – there are many growing regional towns all across the country which are experiencing a need for available rental properties.
Take out the emotional side of purchasing, and review your circumstance and decision objectively. It’s important when considering why you’re purchasing; trust that it’s not uncommon to need professional help in doing so.
When you’re at the property hunting phase of your purchase, consider who your potential tenant will be. Does your property tick all, if not most, of the boxes tenants are looking for? Proximity for schools/work/play/shopping etc.
Remember that even in the best suburbs there are properties that might not be the right purchase. Prepare our financial planning beforehand, research and shortlist more than one suburb to invest in and consider expenses on the property to appeal to the right tenant.
If you’re in position to purchase your next investment, have your RE/MAX Extreme property manager introduce you to their sales team to help find the right property for you – it may just be available now.
SOURCE: RE/MAX Australia
