Perth market priming for investors – Make sure you MAXIMISE your results
The Perth market currently presents an excellent opportunity for potential investors.
If you’re a first time investor, make sure you know the tricks of the trade! We looked a few ways to make sure your investment property shows some great returns
- Go with what you know
Try to avoid buying in areas you are unfamiliar with, buying in an area you know gives you an advantage in seeing value. You know where the all the schools and shops are, you know how busy or quiet a street is, you may even know what the neighbours are like!
Going to a new area may at times seem appealing, but when you are uninformed, you have a distinct disadvantage when negotiating price. If you do want to head into the unknown, then make sure you do your research!!!
- Get the property ready to rent
Investment properties can be an excellent source of cash flow, but you have to have tenants for that flow to come! Buying in a good area, on a big block or getting a bargain price might have great potential for capital gain; but if you are looking for cash flow, then you should ask yourself the question of would you live here?
Check the condition and age of the facilities of the home, as good as an area might be, not many people like living in a house with a run-down bathroom or kitchen. Consider putting a little bit of money into the property to be able to charge higher rent!
- Crunch the numbers
Make sure you know exactly how much money is going in to this investment! More importantly, make sure you are getting financial gain out of it! It is not as black and white as the property price, interest repayments and monthly rent. There are always extra costs involved: Council rates, property management and settlement costs to name a few. They are unavoidable but in some circumstances can be minimised.
Settlement cost is a good example. Make sure you get bang for your buck! Don’t just use who your Real Estate agent or broker recommends, you can save hundreds, even thousands of dollars by getting a few different quotes.
These are just three things to consider when purchasing an investment property. There are many tips, tricks and theories behind investing in Real Estate. Find the right property and it will be a good move!
“Real Estate investing, even on a small scale, remains a tried and true means of building an individual’s cash flow and wealth” – Robert Kiyosaki
Don’t let this current buyer’s market pass you by!!