Choosing a property for investment purposes is not the same as choosing a home to live in. Keep the following tips in mind:
- Not all titles are created equally - whilst most apartments are strata titles, if you're buying property that's company title make sure you read the fine print carefully. The owners of company title buildings are set up as shareholders in the 'company' and they must vote to decide on various rules including occupancy changes and rental rights. You also have to have approval for most alterations, even within the unit itself.
- Choose for rental appeal - even though you won't be living in it, you'll want to make sure the property has features that most people look for, including internal laundry, proximity to transport, security, car space/garage, balcony.
- Don't over do it - it's possible to spend more money on renovations and upgrades than you're ever likely to see in returns. Make sure you are realistic about how much someone will be prepared to pay when you eventually come to sell. You want to do enough to seduce buyers but not so much that you're out of pocket.
- Keep your finger on the pulse - when property prices are dropping and rents are rising, it may be time to make the most of economic conditions.
- Do your homework - if you're buying in an area you're unfamiliar with, research it well. Look at data on property prices in the area and rental yields as well as vacancy rates. Speak to the local residents and shop owners and even the council to find out as much as you can about the place. There's a lot of information out there to help you, like RP Data's report on the best suburbs to buy in around the country.
Report from stgeorge.com.au
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