It’s easy to get caught up in the thrill of buying an investment property, but there are some key differences you need to keep in mind before putting a deposit on a nest egg.
You’re not buying it to live in
When you buy a home, it has to suit your needs as an individual, couple or family. The decisions you make are based on the way you live and what you need in your daily life. Unless it’s a holiday house, your investment property is more than likely to be for someone else. So think of the person you expect to be paying the rent each week. Will they be a student? A worker commuting to the city? Perhaps they’re a young family. Try to look through the eyes of your potential tenant and spend your money on a house or apartment that will make them comfortable. A happy tenant is more likely to stay long term, saving you the costs of advertising to find someone new.
It needs to work for you financially
Paying off a mortgage on the property you’re planning to stay in for decades is one thing, but the purpose of an investment property is really only one thing – to make you money! The more quickly you can pay off your investment property and the more quickly it will appreciate in value, the better off you’ll be. Choose wisely on a property that is in a high demand area for tenants and maximise your chances of profiting in the long term.
You don’t have to manage it yourself
One of the biggest challenges of owning a home is all the maintenance and upkeep. Enlisting the help of a great property manager will take away all the headaches surrounding plumbing and pest inspections when it comes to your investment property. For a small fee that’s well worth it, a property manager will organise maintenance and repairs whenever they’re required, keeping you informed and saving you the hassle. They’ll also deal with finding the right tenants, doing inspections and making sure the payments keep rolling in.
You don’t have to love it
Your investment property purchase doesn’t have to tug dramatically at your heart-strings. It can be the complete opposite of anything you’d ever live in! It’s a means to an end and there may come a time when you have to sell it unexpectedly, so save yourself future heartache and don’t get emotionally involved in your bricks and mortar investment.
A Buyer’s Agent can help you find the perfect investment property. For more help, contact Amanda On My Side.