Steps to Take When Buying an Investment Property in Australia

Investment properties can be an excellent way to earn passive income and set yourself up for a comfortable future. After all, real estate can provide stable cash flow, protect against inflation, and be a form of leverage for other investment types. Being aware of these advantages doesn’t mean you know how to enjoy a successful investment property purchase. If you’re getting ready to purchase your first investment property, take these steps:

Contact a Real Estate Company

Anyone can browse real estate listings online. However, whether you’re purchasing Golden Beach, Moffat Beach, or Caloundra real estate in South East Queensland, it helps to have a real estate company on your side.

Real estate companies can learn what you’re looking for and inform you of properties that are currently listed or will soon be listed. The more of a ‘heads up’ you receive, the earlier you can begin your due diligence and be in with a chance of securing the ideal property.

Real estate companies can also provide helpful advice and guide you through the entire purchasing process. It may only be a matter of time before you’ve found suitable housing and are signing on the dotted line. 

Research the Market

Not all investment properties are money-makers. Properties in poor condition can require significant renovations before they’re suitable for their new tenants. You may also find that interest rates can make some properties less cost-effective than others.

Always research the market before proceeding with an investment property purchase. The more you know about what the market is doing, the easier it might be for you to make informed decisions. 

Do the Math

There’s more to investment property ownership than comparing your mortgage payments to the rent you’ll be earning. Local property taxes, management costs, insurance, and repairs can all cut into your bottom line. Complete thorough calculations to ensure that purchasing an investment property is the right financial decision to make.

Choose Your Rental Type

Some rental types are more lucrative than others. Even before you start looking at houses for sale, consider the rental property that will suit your preferences and needs the best. This decision may help you choose the most suitable property.

Some people like the consistency and stability of a full-time rental with fixed-term tenants in place. Others prefer the flexibility of short-term rentals short-term rentals they can use as a holiday house for themselves. Many property investors also see short-term rentals as the most profitable option. After all, Queensland, Gold Coast short-term rental landlords generated $83.6 million in the first three months of 2022 alone.  

Use a Property Manager

After buying a suitable investment property, you must consider who will take care of it. If you’d prefer to be a more hands-off landlord, you can enlist the services of a property manager. They can take care of everything from screening and managing tenants to collecting rent, performing inspections, and organising maintenance and repairs.

Buying an investment property can be a wise decision for your future comfort. Take these steps above to potentially enjoy a straightforward and stress-free buying process.