It is hard to lose when you invest in property. Property continues to be a valuable asset whether you enter the market in a boom or a bust; you just have to make sure that you choose a property that is going to give you the best return on your investment.
The most important part of choosing a good investment property is to do your research. You want to find an area that is going to go up in value. Research the current market trends by checking the auction results in local newspapers, or search for property trends on the internet. You want to find an area that will be cheap to buy into but is forecasted to go up in value.
Don’t get caught up in the appearance of a home though. Often the houses that can make you the most money are those that don’t look too pretty at first glance. You can often make big savings on homes when you do some renovations to it yourself. Just be careful not to overcapitalize and give yourself a renovation budget that you can stick to.
In Bacchus Marsh for example, there are a few homes that could do with a bit of a makeover, but often it just takes a coat of paint and some minor repairs and they can already attract a higher buying price than what was originally paid for it.
Once you have picked the property that you think you would like to invest in then there are 3 things to think about – capital growth, vacancy rate and rental yield. Sometimes it will require a balancing act of all three of these and you will find that some places will have a high rental yield but low vacancy rate and capital growth or possibly a high vacancy rate but low rental yield for example, so you’ll need to figure out how your investment property is going to make you a profit for your situation.
Of course there are all sorts of other considerations you’re going to have to make with your investment property as well, such as any ongoing taxes and fees and these will differ depending on the area and type of property you choose. Though remember that there are plenty of tax concessions that can be claimed back and a good accountant can help you to work out your finances for you so that your property is working successfully for you.
Overall an investment property is a great way to make a profit you just have to make sure that you are clever and work out exactly where your money is going to go and where you are going to make a profit.
There are plenty of properties available in Bacchus Marsh and surrounding areas that would make for great investments, so if you’re interested in looking for an investment then please get in touch.