Investing in a property can provide several benefits, like giving you a sense of financial security and stability. But, with the Melbourne property market soaring, it can be an intimidating time to conjure up the courage to even start looking. If you’re interested in making an investment, rest assured, there are several ways to make investing more manageable. For example, if you’re renting in an area where you can’t afford to buy a home, ‘rentvesting’ allows you to become a homeowner and benefit from earning rental income and tax benefits you may be eligible for. It’s all about doing your homework, referring to professional advice and working out a solution that suits your needs.
In this article, we explain key areas of research that can lead you to a quality, worthwhile investment property.
Your investment’s proximity to amenities can make it significantly more attractive to the rental market. Surrounding facilities like shops, schools, universities, parks, open spaces and public transport draw people in and add value to the suburb and its property.
2. Capital Growth potential
Look for areas where high growth is projected. According to REIV.com, some top performing – and affordable – suburbs in Melbourne include Croydon, Broadmeadows and Deer Park. Also look for areas where rental yield is a high proportion of the property values, to ensure that you’re making the most of your investment.
3. Maintenance level
Opt for homes that don’t require too much maintenance – features like a pool or extensive landscaping will definitely cost more to uphold. Also, your investment doesn’t need to be brand new, but it should definitely be in working order. Don’t buy a property that will need a huge renovation before you can either rent it out or live in it yourself. If you’re not sure what to look out for, commission a building inspector who can tell you how much you’ll need to spend before someone can move in.
4. Orientation and floorplan
Ask what changes are being made to the suburb of the property you’re looking at – this can affect its value for better or for worse. Also, check the floorplan to see the layout of the home to help you understand its features as well as the relationships between rooms.
Avoid neighbourhoods with high vacancy rates – this is quite often an indicator that the suburb isn’t very popular (and won’t attract rental interest). It could also mean that your investment will be difficult to sell in future.
6. Owner occupier appeal
Choose a home that you could imagine living in yourself. Chances are, someone else will feel the same. Spacious rooms, quality appliances and natural lighting are a few examples of features that can make a home more enticing to a potential renter.
If you’re looking to invest in a home, doing your homework is vital. The wrong purchase could prove detrimental to your finances and leave you in debt. To minimise your chances of making the wrong choice – and to get expert advice on how to make the most of your investment – consider commissioning a buyer’s agent, like Industry Insider. Our property advocates can help you find a property that will suit your budget and set you up for the future. Give us a call today.