If you’re thinking about investing in property for the first time, it may just be your lucky day – or month, or year. According to a recent article published on Yahoo! Finance, record low interest rates in Australia have been piquing the interest of more and more property buyers over the past quarter, many of them investors looking to maximise their returns as property prices inevitably start to steadily increase over the coming months. But how can you ensure that you make the right investment for your own personal financial situation? Well, there are a number of ways, and it all starts with doing your research.
If you’re new to the property investing market, we’ve put together some top tips to help you get started:
Choose which state to invest in
Not all states and cities in Australia always perform equally well or equally poorly. Being such a big country, there are many different factors affecting the property prices in different areas around the country every month. Some months, property prices could be skyrocketing in one city, while plummeting just a few cities away. Keep an eye on both overall property trends, as well as specific locations. Don’t ignore regional areas either – they can often be ideal for investment property seekers, as they tend to be growing areas due to resources booms and associated population influxes. With Quest Properties, the research on which areas are best to invest in is already done for you. Our dedicated site selection team thoroughly research, qualify and visit each potential location to ensure a reliable and safe option for investors, so the headache of trying to find the perfect location for your investment property is taken away. The issue of always having the “perfect timing” when choosing property to buy is also taken away, as you won’t need to worry about fluctuating markets, instead relying on a constant, steady growth.
Get the right financing from the start
Finding the right loan to finance your purchase is essential if you want to ensure you’re getting the right loan for your needs, right from the start. Using a professional mortgage broker can save you time and hassle in the long run, as they’ll be able to assess your current financial situation, look at your long term goals, and then help you seek out the right kind of loan for your needs. Knowing what your likely returns are also makes it much easier to determine exactly how much you’ll be able to pay back – a big plus when trying to secure a loan. A predictable 6.5%+ income return on gross rental with Quest Properties is just one of the factors that will make you more confident in taking out a loan.
Familiarise yourself will all the tax benefits associated with owning property
The Australian Taxation office allows owners of income producing assets to claim certain expenditures as tax deductions – including things like council rates and land tax, declining value of appliances and interior fittings (such as carpets and air conditioning systems), and even the interest you pay on your property loan. Tax implications vary from individual to individual, so it’s of course best to speak to an expert about claiming in order to maximise your tax benefits.
Determine what type of property to buy
House or apartment, residential or commercial property? Consider all the different options thoroughly before making your decision. There are pros and cons for each, of course, but certain types of property have definitely been emerging as some of the best options. One of the best things about investing in serviced apartments, for example, is that there’s continuing and increasing demand from business travellers, visiting both from inside and outside Australia. It’s a market that has really come to the forefront in recent years, and the upward trend doesn’t show any signs of slowing down, if the recent stats from the Australian Government are anything to go by.
Consider buying into an established property brand
Making an investment into an already well-established brand of apartments or accommodation could be the wisest move you make. Established property brands, such as those who run serviced apartments, can be secure. Be sure to choose a well-established brand with a proven track record of providing returns to its investors, as this will mean that your investment is even more secure. With Quest Properties, you’ll save a lot of time, as many of the traditional management aspects of owning a property and leasing it out to tenants is removed – You won’t have to find and qualify your own tenants, worry about vacant periods, conduct property inspections, collect the rent, or deal with any maintenance. You get all the benefits of a professional property manager included in the price of your initial purchase. Quest even takes care of rental price adjustments for you – they conduct market rent reviews every 5 years to ensure that rental prices are always in line with current market conditions, and bringing you the best return on your investment.
If you’re a first time property investor, it always helps to speak to experts who have plenty of experience in property investing, so you can get the benefits of their knowledge and experience.
For more information on investing in your first property, speak to the experts at Quest Properties.
The above information is supplied by Quest Properties.
Disclaimer: while due care is taken, the viewpoints expressed by sponsors and contributors do not necessarily reflect the opinions of Your Investment Property.
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