Ensuring Return on Investment
When you are looking to make any investment, it is vitally important that you do your research and make sure that you will be getting a good return on investment. No investment is totally guaranteed no matter what an adviser tells you and some investments are safer than others so do the research. Make sure that the neighborhood you are looking to buy that property in has a good safety record and rental prices are rising.
Look at the property as a tenant would and think about if you would want to live there for the price you will be asking. Kitchens and bathrooms are big focuses when buying, selling, or renting a house so if you need to renovate make sure that you will be getting a good return on investment. Buying a property for an investment should not be taken lightly and it should not be done with your heart on your sleeve. Just because you like the charm of a period home does not mean everyone else will so make sure to keep your eyes on the big picture and not on the cute quirky details.
The math needs to add up so do not overlook the cost of maintenance and consider renovations as part of the cost of owning a property. Upkeep can eat away at the actual return on investment so make sure to include these into your calculations. Consider the risks that are out there. A rental property in a mining town was a great investment years ago but now it might be one of the worst property markets in Australia.
Every investor should have a time frame to work on that particular investment. Weigh your options and think about how long it will take you to achieve the return on investment you want and if the property can realise that return.
Some investors prefer to have all of their properties in a concentrated area while others might have home for rent in different states and both approaches have their positives and negatives so you will have to consider your own situation. A good investment should be making great returns and with all of the opportunities in the market. Every property has its own unique abilities to give you a return on investment. Now is a great time to take a chance in a market that will give you the financial security you need.