It can be exciting to be considering an investment property but making the decision to buy is only the first in a series of important choices that can crucially influence the return on the investment and the ultimate success of the venture.
All the standard questions apply: what, where and how much. However for an investment property the answers will often be very different to those that apply when choosing to buy a home.
For example when buying a home most people identify their wish list of features and location first. Of course that ‘wish list’ may well have to be modified because of budget limitations (there is no harm in dreaming!). And sometimes the budget can stretch if you fall in love with ‘the perfect property’.
But when considering an investment property it’s vital you leave your heart at home.
The fact is, it doesn’t necessarily matter if the property isn’t to your taste or if it is in a location that doesn’t suit you.
What matters is getting a realistic evaluation of potential rental income and occupancy as well as potential for long term capital gain. But remember, don’t look at those numbers in isolation. It’s important to also consider the cost of any maintenance the property might require.
Which brings me to the often thorny issue of tenants. Every investor wants a tenant who meets their rental obligation. To be honest as a Property Manager that’s the easy bit to manage. The difference between a ‘tenant’ and a ‘good tenant’ is one who treats the property with care and respect. But at the same time every investor needs to recognise even with the very best tenants a property will age over time.
To sum it all up when it comes to investing in property there is a constant juggle between heart and head, income and expenses. To ensure all those balls are balanced and in the air at the one time the key is to work with a Property Management team with knowledge, experience and integrity.
Give the McKillop team a call if you would like to discuss your property investment goals.