Nine-Point Strategy to Finding and Buying your Ideal Investment Property - Coral Sea Property Management

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Nine-Point Strategy to Finding and Buying your Ideal Investment Property
Finding an ideal investment proeprty to maximise your rental income

Finding a great Townsville investment property requires due diligence, discipline around the organisation of your finances and a strong understanding of the Townsville rental market (Especially Capital Growth).

Before you get started in property investment you need to be on top of mortgage and tax obligations, as well as potential income, capital growth and tax benefits from negative gearing and write-offs. Maximising your rental income is essential when looking at buying an investment property. It is important to consider your specific situation as what someone would consider a “good investment property” for them might not be applicable for you. Chat to us before you buy an investment property to avoid frustrations down the track.

Focus on the anticipated financial benefits from an investment property: are you seeking an outright positively geared rental income or is the purchase strategic to minimise tax or develop a long-term wealth portfolio. Clever property investors start with a clear plan in mind. The last thing you want is to be stung with a surprise tax bill when you sell your property due to capital growth.

As an experienced agent in the Townsville Property Market, I always suggest to my investor clients that they seek professional financial advice to avoid unforeseen costs before buying an investment property and starting their property investment journey. We can recommend a fantastic local accountant or mortgage broker to assist with your investment needs. We can also provide relevant accurate information to help you find a good investment property.

Picking the right house or unit when investing in property requires an equal amount of attention. And if you’re looking at an investment property right now, you’re likely ahead of the curve. We can assist you with finding the right investment property in Townsville and provide all the information needed to rent your property quickly and effectively to maximise your rental income.

Graph opf investment property returns Towensville City (Units)

Graph of investment property returns Townsville City (Units)

 

While property prices are strong, the Townsville rental market has seen significant rental growth in the past 18 months. The Townsville Property Market is red hot and there is a significant portion of renters struggling to find an investment property to rent which spoils property investors and landlords for choice when finding great tenants.

Suburb stats for Townsville City Investment Property  2021

Suburb stats for Townsville City Investment Property 2021

To help you in your search, here are nine critical considerations in deciding on an investment property. 

 

Vacancies –

Always look at the number of vacant rental properties in your target area. You don’t want to invest where there’s an oversupply or somewhere that doesn’t attract good quality renters. Townsville property management vacancy rates are currently under 1% which is incredibly attractive when considering investing in property.

Rental income –

Compare the rents being asked for similar properties. Can you make your numbers work at the going rate? Find out how to increase your rental returns on your investment property with a recent blog.

Future developments –

Are there any significant developments about to come on to the market? A release of several hundred houses or units places pressure on rental incomes and can result in a short to medium-term fall in values and limited capital growth. Similarly, look at what land development is planned to assist in finding the perfect Townsville Investment property.

Employment –

Areas with readily available work are excellent locations. Find out about local employment opportunities in your target areas. If there is a strong hospitality and casual workforce, which is usually evident in tourism centres and university towns, this is great news. Check for major facilities, hospitals, shopping centres to ensure the long term strength of a location.

Entertainment –

Finding a location close to cafes, restaurants and movie theatres is gold if you want an apartment or house with young professionals as tenants.

Neighbourhood –

The locality will influence the type of renter. Any location near a university or major hospital will attract students and lecturers, and doctors, nurses, and others employed in hospitals.

Schools –

A rental property near a school is a winner, especially if you’re thinking of investing in a house. Families who rent are usually longer-term tenants. If education requires a long bus trip, you’ll struggle for a tenancy.  In Townsville, there are a number of highly sought after state schools such as Pimlico High School. Renters will pay more for properties in the Pimlico High School catchment.

Crime –

Seek advice from local police or check the internet for local crime statistics. Vandalism and petty crime can drag down the value of your investment property and diminish rental returns if you don’t take the steps to prepare for it. Installing deadlocks on properties is essential.

Council rates –

Do due diligence on your favoured locations. You might be surprised at the difference from one council area to another. We can provide advice and assistance in understanding your Townsville investment property rates notice to make you more informed before you buy an investment property.

Are you considering buying an investment property? Get in touch with our team and let us help you!

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