Tips On Buying Investment Property In Australia
There are many things to consider when an investor is potentially looking to by an investment property in Australia. Below are just a few of the points to consider, however they are not investment property advice are are only meant to be a guide.
1. Location, location, location is probably one of the most heard sayings when it comes to investment property, well actually, anything to do with buying or selling property in general. Choosing to buy and investment property in a good location can literally make or break the property investment, maybe not over the long term, but in the short term, may developers and property investors looking to quickly flip a property can quickly find themselves in financial trouble.
Ensuring you have done your homework and picked out a good location for your investment property is crucial to your Australian property portfolio.
2. Buy a quality investment property! This can be a bit of a debate but it generally comes down to what “purpose” are you buying the property, however if a property investor was to be looking to purchase an apartment in a development, the size of the development can effect the long term capital growth. Smaller, boutique property developments generally hold value better than large high-rise apartment buildings.
3. Investment Property Vacancy Rates. This may be one of the more forgotten factors when buying an investment property as some investors can bury themselves in property purchase prices along with land taxes and potential capital growth, but totally forgetting how much of the time their investment property could be left vacant for through an investment term. Most investment properties in Australia are vacant (on average) about 5%.