Buying an investment property has different criteria from buying one for yourself. In both cases you would start with an appraisal, and you would want to know the long-term growth potential. You would also always get a building inspection.
In the case of an investment property, however, you would then proceed to evaluate the property financially to see whether or not it was a profitable venture.
In doing so you would first have to ascertain its rental potential. Of course, a copy of an existing tenancy agreement would be a big help, but it’s also important to double check and make sure the rental agreement isn’t a developer-guaranteed one that is out of step with the market. So make sure you actually access the true market rental. Our property managers can provide you with this information.
You will also need to access the market demand for your potential purchase in its current condition. Then look at the potential tenant turnover taking into account the current time of the year and the overall rental market.
It’s always good to factor in a probably vacancy period which will vary from property to property. Houses and townhouses, for instance, tend to draw families, and families tend to stand put longer than younger single people.
If you are interested in purchasing an investment property, feel free to phone our Rental Department on 07 3824 2700.