Buying a property to live in and buying purely as an investment are two very different things. But what should an investor be looking for that an owner occupier might not have to give the same level of consideration?
Number one has to be location, location, location. If you want to make sure your investment property appeals to tenants for many years to come, do your research and choose carefully. Being in close proximity to good schools, shopping centres, the freeway, public transport and amenities such as the hospital, library and recreation facilities will put your property in good stead for attracting tenants and increasing in value.
Something else to consider is vacancy rates. If a suburb has a high vacancy rate, it’s unlikely that this will change in the near future so you may find yourself without a tenant early on. Similarly if the suburb you choose to buy in has a high number of rental properties versus owner occupied, you may be competing for a limited number of tenants.
Buying at the right time in the property market cycle can make a big difference to the success of your investment. Buying at the top of the market could mean you don’t see any growth in the value of your property for many years hampering plans to buy more properties in the future. The Perth market has had its boom and is sitting around the bottom of the cycle. Investors who purchase a property now will be in a good position to take advantage of the next upswing in the market.
Naked Real Estate agents can offer expert advice to investment property buyers assisting with information on suburbs’ vacancy rates and breakdown of owner occupied versus rental properties. If you’re in the research phase, ask one of our agents for assistance, they are happy to help.