Property investment is a very attractive proposition, as the price of land never goes down, it’s more a question of how much its value increases over time. Carefully selecting the property should ensure a healthy long-term return, and with more and more investors moving into the buy to let arena, the property offers a sound and relatively risk-free investment.
Buying to Let
If you have decided to acquire a property with a view to renting it out, you should focus your attention on emerging neighborhoods. Certain Sydney suburbs, for example, are very much in demand, and by using Mint Equity Sydney mortgage brokers who have all the right connections, you can make an offer when you see the right property. Obviously, as a property landlord, there are many responsibilities, so you are advised to enlist the services of a good property lawyer, who can help you draft a tenancy agreement and ensure you are fully complying with the law.
Sourcing the Right Property
The property market in most Australian cities is quite lively, with bargains coming and going, so it is important to source a good independent mortgage broker who can secure the right loan at the right time. It pays to be patient when looking for an investment property and by securing mortgage pre-approval in advance, you can quickly make an offer when the right property comes along. There are some useful tips for first-time property investors you can refer to, which might prove informative, should you decide to go ahead with the project.
Property Management Companies
Many landlords outsource the management of their property to a specialist company who not only source tenants, they also maintain the property on the owner’s behalf. This type of company would screen potential tenants, as well as ensuring that the property is in good order, allowing you to focus on other things, safe in the knowledge that your rented property is being managed in a professional way. There are many things that a property landlord is responsible for, so it is important that you are fully aware of your legal obligations prior to embarking on a project.
Buying property as an investment involves taxation and in order to minimize your tax liabilities, you are well advised to consult with an experienced property lawyer. All maintenance costs can be offset and by enlisting the help of a good property lawyer, you can minimize your tax liabilities.
Renovating an Old Property
If you are knowledgeable about building, why not acquire a property that requires renovation? There are real bargains to be had if you know where to look, such as buying a repossessed home by way of auction, then with an added investment to bring the property up to scratch, you can command high rental, which should give you a healthy return over a period of years. Buying a run-down property does have its advantages, providing, of course, you are certain that the property is structurally sound and that you do have the available finances to carry out the renovation. Even if the work took a year or two to complete, the rental value of the property will be high, providing you bought in the right area.
Like any other form of investment, the property has its risks and by seeking out expert advice, you can make an informed decision.
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