3 Factors To Consider Before Buying An Investment Property

Are you new to real estate? Learn about the three factors to consider when looking to buy an investment property.

Becoming a property investor can be highly rewarding with the right strategy. Entering the property market at the right time with the right property that helps you achieve your property goals is something every investor strives for. 

As the demand for rental properties continues to increase, now is the best time to discover what property investment opportunities are available to you. Before starting the purchase, it is important you decipher a plan.  

Here are three important factors to consider while planning to purchase an investment property. 

Determine Your Property Goals

Investing in the property market can have many benefits depending on what your goals are. You should identify your property goals and strategy prior to purchasing an investment. This will help you stay on track to achieve your goals by finding the right property in the ideal location. 

The first step in determining your property goals is establishing the timeframe of the strategy. This can be split up into short, medium or long-term timeframes. 

Short-term strategy

A short-term strategy can be anywhere from the day of settlement to 2 years. An example of a short-term strategy is to purchase an established house that requires maintenance, repairs or upgrader. You can renovate the home then decide to sell once all the work has been completed in a short amount of time.   
Medium-term strategy

A medium-term strategy can be between 2-5 years. A medium-term strategy is to purchase a home and watch it grow in value over time. Throughout owning the property, it can be turned into a rental property so you can receive stable rental income.

Long-term strategy

A long-term strategy can be 6+ years. Similar to the medium-term strategy, it is about purchasing a home that will create significant capital growth.

It is important you structure your goals to align the property cycle so you can reap the benefits when it is in a rising market. 

Once you have determined your property goals, you can explore your property options. 

The location of the property

The location of the home is very important. Thorough research to potential locations can help you achieve your medium or long-term property goals. 

There are 4 important factors to consider when determining the location of your investment property:   

  • Is it a high growth suburb?
  • Is it a high rental yield suburb? 
  • Is there a low vacancy rate?  
  • Is the suburb experiencing any growth in infrastructure?

The rental property will likely generate more tenant interest if it is in an appealing location. 

An appealing location is a property that is in close proximity to schools, shopping centres, public transport and highway access. 

For medium and long-term property goals, research the existing infrastructure and explore if any future developments are planned for the suburb. New developments such as schools, highways, shopping centres or public transport may affect future property prices and are likely to boost the local economy and lifestyles. Areas of high growth will often see a rise in employment opportunities, which could attract future tenants to the area.

Maintenance and Property Management

Although you may be able to manage the property yourself, it might be more beneficial to use a property manager. 

A property manager will be responsible for dealing with the day-to-day tasks including liaise with the tenant, conducting routine inspections and organising any repair works.

As the property owner, you want to ensure your property is managed by property managers who are well-experienced, knowledgeable, and organised.   

Rent your investment property with reassurance with QPG Realty. QPG Realty is confident that their personalised service and competitive rates will outrival any of our competitors

Click here to connect with QPG Realty. 

Explore the investment opportunities available to you by connecting with Queensland Property Group. Click here to connect with industry experts if you are looking to build your next investment or purchase an established home in South East Queensland. 

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