We talk a lot about Mudgee being a major hotspot for investors because of the rental demand caused by increased mining operations in surrounding areas. But for people who have never invested in real estate before, here are some tips that might be of benefit to you.
Even if you’ve bought a property to live in, investing can be slightly different because what you want to be looking for in an investment though may differ from what you’d buy if you were purchasing a home for you and your family.
Real estate investment tips:
1) What is the rental population of the suburb you’re looking in?
2) What sort of rental returns to similar properties in the area return?
3) Will the property attract desirable tenants?
4) Are your finances in order so that you can afford to borrow enough to cover mortgage, maintenance, insurance premiums, etc?
5) What insurances do you need? Building, Landlord, Public Liability etc?
6) What sort of maintenance is the property likely to incur during your ownership? The age of the property should give you an indication of what will likely need fixing or replacing.
7) Does the property have any other costs associated with it? These might include strata levies, sinking funds, management fees etc.
8) What are your long term goals? When do you plan to sell the property? Is it practical/possible/probable that you’ll achieve your goals in the predicted market?
9) Have you spoken to property managers in the area about their services and fees?
10) Are you investing by yourself or with someone else? Are you comfortable that you’re entering an agreement with another person?
As usual, we recommend you talk to people you know about their experiences, but remember that some people are cut out for property investment, and others are more suited to shares, term deposits or other types of investments. Definitely talk to professionals in the area of finance and property sales as well, because they’re the experts in their fields and can give you current market information based on your circumstances.
If you’re looking for real estate advice or your first investment property, visit our website to check out what’s available or contact us for a private and confidential chat. We would love to help you secure your first real estate investment.