Low interest rates and favourable tax arrangements are making property an increasingly attractive haven for investors, and purchasing a solid bricks and mortar investment is certainly worth considering if you’re looking for a secure financial future.
Before you dive in and start being wooed by what’s currently on the market, do some research and set some guidelines.
Splurge on Location
Tenants will look for properties that offer them an easy lifestyle in a great location. Transport ticks a lot of boxes for people in the market for a rental property. Brisbane offers an extensive bus network, so it’s worth investigating how far the local stop is, and whether city express services run through the area. If you’re really savvy, secure a property within reach of buses and trains, thus doubling transport options.
You can’t go wrong investing in areas close to major infrastructure. Some of Queensland’s largest employers are based in Brisbane’s CBD, but you can also find industrial hubs, educational areas and major hospital facilities in the inner to middle area suburbs.
Think Like a Tenant
When you purchase your family home, it makes sense to get swept up in emotion. After all, you want to love where you live and share it for many years with family and friends. If you’re buying an investment property, leave that emotion at the door and put your tenant cap on instead.
Consider the sort of person who might like to live in your desired investment. If they are a young professional they’ll want to be close to the city, and might be willing to spend that bit extra on a complex with a pool, recent renovation or upmarket kitchen appliances. Young families seek good value for money close to schools and parks, while larger properties near universities are attractive to young students who might be setting up house for the first time.
If you can’t picture the sort of person who would live in your potential investment, that’s a good sign to go back to the drawing board and keep looking for a better option that will appeal to a wide group of people.
Embrace the Sunshine State Lifestyle
Properties with little or no outdoor areas will be infinitely less popular. We have a brilliant climate in Queensland so it makes sense to secure an investment that allows for a little outdoor entertaining, whether that’s on a small balcony, courtyard or traditional timber deck. These properties will have a better rental return and be more in demand than interior apartments, which can make even the sanest person feel cooped up.
Also consider the amount of natural light the property receives. The more the better, as light will flush out dingy corners, and make the whole property feel a lot more welcoming and homely. Open plan design works well with today’s modern lifestyle and also lends itself to the Queensland climate, allowing plenty of a good breeze to flow through the property.
Bring in the experts
Purchasing an investment property is a complex business; so it pays to get a team of professionals on your team. Work with a reputable and knowledgeable agent who is familiar with the area you’re considering, consult with a mortgage broker to get a great loan rate, and have a chat to an accredited financial advisor about the best solution for you.
Don’t forget the normal rules
Just because you’re not planning on living in your property doesn’t mean someone else will. No one wants to live where noise is a problem, or right next to an airport runway. Properties in undesirable locations suffering noise pollution are difficult to sell, and difficult to rent.
Also remember the basics in terms of maintenance. Avoid properties that need expensive attention upfront, for example anywhere that might have a high asbestos risk, rising damp or termite damage. Investment properties are a great long term financial plan, and the last thing you’ll want is a bottomless money pit causing unnecessary stress and heartache.