What should you look for when buying an investment property?

Are you considering taking the leap and purchasing an investment property? If you answered yes, it’s probably because you want to get ahead financially, and entering the real estate world is a great way to do this.

There are many things to consider before settling on a property; we’ve listed some below.

• Property location – How well do you know the area you plan to purchase in? If you are not familiar with the suburb, have you done the appropriate research and investigated things like nearby schools, local cafes, shops, and parks? These are all key considerations your future tenant will be thinking about.
• Current rental prices in the area – To get the best value as a landlord you need to consider what other rentals in the area are priced at; considering the price of other properties for sale in the area is also important.
• Age and condition of the property – You’ve done your due diligence on the area you plan on buying but what about the actual property? How many years ago was it built, and does it require renovations? While you might not be living in the house, consider what your tenant might think if they must frequently call the property manager to fix a leaky tap every week!
• Property Features – How many bathrooms and toilets are there? Tenants will have different needs, but those properties with more bathrooms are often the more favourable choice. Working from home is the new norm (or at least part of the week anyway) so considering if there is a dedicated office space in the property or can a spare bedroom be converted to fill this need?
• Is there a garden that needs tending to – Gardens may look beautiful when they bloom, but it takes a lot of work to maintain. If you are purchasing a property with a garden, what are your expectations of the tenant? A large garden may be a dream for some but a nightmare for others.
• Building amenities – If you are considering purchasing an apartment what else does the building offer? An apartment building that offers services such as a gym, theatre room, and general area to host events will be seen as more valuable.

After reading this list, we hope it’s helped kickstart your investment journey. If you are considering properties within the Belmont, Rivervale, Redcliffe, Ascot, Kewdale, Cloverdale, and surrounding areas, Ray White Urban Springs is a fantastic place to start your inquiries. If you’re looking for expert advice on the Perth rental market and investment guidance that ensures you get the best return contact Deborah Horder on 0433 098 029 or deborah.horder@raywhite.com.