Investment Tips

Are you ready to invest? Choosing the right investment property for you is not an easy decision. You need to consider things like what is the right suburb? What type of yield you will get? And how much money you are actually willing to invest. Here are some handy tips to help you navigate your investment.

Budgeting the smart way

Deciding whether or not you want to move into your investment to fix it up before renting it out or, whether you just want to rent it out right away is an important decision because this can have a significant impact on your budget. Depending on what property you buy, it may be inevitable that it needs a bit of fixing up before you rent it out. This plus any ongoing costs are things you most definitely need to take into consideration when choosing an investment property as you don’t want any hidden costs blowing your budget!

Choosing the location

Purchasing in a booming area where there is a demand for rental properties is a great starting point to finding the right suburb. Ensuring there is demand for rental properties will allow you to have a quick turn-around from purchase to renting out. Another handy tip is to look for areas that are in close proximity to transport, education facilities and conveniences like supermarkets as these spots typically have higher density living and demand.

Be prepared

Not all tenants will be difficult to deal with or disrespectful of the home they are living in, but you never know so having landlord insurance is a must. This will give you peace of mind about weather damage or sudden loss of rental income due to vacancy without notice. This type of insurance differs from your typical home insurance as it covers the building plus its contents belonging to the landlord that are there for the tenant to use (like dishwasher, fridges etc.) Landlord insurance also covers things such as blinds and carpets. All these things can be quite expensive to replace, so having the right insurance can keep your stress at bay and remove the hassle out of funding any appliance or furnishing replacement.