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!!
Nick Boehm
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