What makes a good property investment?
It's little wonder that so many Australians are jumping on the property investment bandwagon. With the cash rate at a historic low and the housing market showing a fantastic level of growth – particularly in Queensland – investing your hard-earned dollars into a rental home could be a solid avenue for growing your wealth for retirement.
There is an enormous array of homes to choose from, so how can you whittle down your search to just one? Here are some features of a potentially profitable investment.
1. Within your budget
Above all, the investment property that you eventually decide on should fall within the limits of what you can afford. Before you even start your search for a home, you should have a clear idea of your budget and how the property could help realise your fiscal ambitions. How will the home fit into your long-term financial planning strategy? Before you start your search, it's worth having a conversation with your financial planner about how investing in a home in the Whitsunday Shire could work for you.
2. The right area
It's a good idea to treat property investment like a business – take the emotion out of the equation and take a look at the cold, hard facts. Glance through property data, values and rent price statistics to see how a suburb is performing. Have rents been increasing? How many vacant properties are there in the area? Infrastructure developments, schools, shops and proximity to public transport can also be signs of a growing or improving suburb
3. Low maintenance
If you're just starting off on your property investment journey, it's a good idea to pick a home that doesn't need too much maintenance. A well-kept house can be attractive to tenants, and means you won't need to spend too much at the outset bringing it up to scratch. Once you've got a bit more experience under your belt – and understand what it costs to look after a rental property – you might be able to take on a bigger project.
Whatever you decide, make sure you've got the advice of financial planner on your side – they can help guide your investments in the right direction.