Professionals Burleigh 
Looking to buy an investment property? Find out what makes a good property investment plus some key things to consider during the buying process.
Purchasing a good investment property is built on the same principles you use to buy a home to live in, with one small but important difference.
Property investors must make their decisions with a business mindset, and remove all emotion from the process and focus only on the investment.
The Keys to a Good Investment Property
A successful investment property would see a steady rental income and strong capital growth.
Investing in a property that is affordable and well-located is designed to look after you and your finances for the long term.
Tenants are always looking for a property that offers them the lifestyle they want, so close proximity to amenities is important (e.g. public transport, schools, shops, and restaurants).
What Do You Want to Gain?
Some individuals want an investment property that will provide sufficiently high rental returns to be self-servicing. This would require little or no ongoing payments from the investor.
Other investors look for capital growth, which takes advantage of negative gearing to reduce your tax burden.
Negative gearing occurs when rental returns do not cover the interest on the money you borrowed, or the ongoing expenses involved in retaining the property.
The loss can be used for a tax deduction, and it will vary depending on the tax bracket you’re in.
The simplest way to increase your expenses is to borrow more when you buy (e.g. borrow 70 per cent, rather than 60 per cent).
But you should be prepared for the potentially adverse effect of interest rate rises or a long period of no tenancy in your property.
Plan Ahead
Property should be treated as you would with any other investment – the higher the return, the higher the risk.
With research, thoughtful planning, and attention to detail in each step of the buying process, risk and stress will be minimised. Seeking help from an industry professional can give you piece of mind and potentially save you unnecessary expenses during your investment journey.
By following these steps, the chances are that you will reap the benefits of investing wisely. We recommend consulting your home lender, financial advisor or bank for further investment advice.
Ready to purchase your Gold Coast investment property? Contact us to speak to a local agent about your investment property requirements.
DISCLAIMER – The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. Professionals Burleigh will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
