To buy investment property can be a great way to grow your wealth and secure your financial future. However, it’s important to approach the process with caution and do your research before making any big decisions. 

The property market is competitive and there are many factors to consider when buying investment property in Australia. It is ideal that you know what to look for in an investment property as there are a variety of elements that can impact your investment’s success, e.g., location and rental demand among others. 

In this blog, we’ll explore 8 things to consider when buying an investment property in Australia. It is going to be a colossal financial commitment, so we hope to help you make the most of your investment and maximise your chances of success.

Buy investment property with confidence

What to look for when investing in property?

Whether you’re purchasing an investment property as a seasoned investor or a first-time buyer, knowing some investment property how to’s will get you into the real estate market with confidence and better negotiation skills.

To buy investment property and be successful in this venture, consider the following:

1. Where to buy a property for investment (Location)

Location is a key factor in determining the success of your investment property. Consider the proximity to amenities, public transport, and employment centers, as these factors can impact the rental demand and potential return on investment. Choose a location that is in high demand and has a stable property market.

2. When to buy an investment property (Timing)

It’s important to consider the timing of your investment property purchase in terms of your personal circumstances and the conditions of the property market. Your financial situation, employment status, and future plans, can impact your ability to purchase an investment property and your ability to manage it effectively over time.

Other time-critical factors like property market conditions and interest rates are crucial too in timing your purchase right. Keep an eye on the current state of the property market and any trends that may impact your investment.

3. What is the rental demand?

Research the rental demand in the area to ensure that your property will be in high demand and generate consistent rental income. Consider factors such as the local economy, population growth, and job market when evaluating rental demand.

4. Has there been a thorough inspection of the property?

Conduct a thorough inspection of the property to assess its condition and identify any potential issues or repairs that may need to be made. Hire a professional inspector to ensure that you are fully informed about the condition of the property.

5. What’s the potential return on investment (ROI)?

Consider the rental yield when evaluating the potential return on investment. This is the amount of rental income you can expect to receive compared to the purchase price of the property. Look for properties that offer a high rental yield and a strong potential for rental growth.

6. How are you going to manage the property? 

Come up with a solid property management plan when buying an investment property. You may choose to manage the property yourself or hire a property manager to handle the day-to-day management of your investment. Consider factors such as the cost of property management, the level of involvement required, and the level of support offered when choosing a property management solution.

7. Are you aware about the tax implications?

It’s important to understand the tax implications of owning an investment property in Australia, such as the capital gains tax and depreciation. Seek the advice of a tax professional to ensure that you are fully informed and can make informed decisions about your investment.

8. What type of rental property to buy?

Different property types offer different benefits and risks. Consider factors such as the type of tenants you want to attract, the potential for capital growth, and the ongoing expenses when choosing a property type.

Should I buy an investment property?

If you’re uncertain whether or not you are ready to buy investment property, don’t hesitate to reach out to us at ZEP Finance. 

Our experienced and knowledgeable brokers will help you navigate the complex world of property investment and guide you towards making smart, informed decisions that meet your financial goals.