Bathurst Blog

 Looking to buy an investment property, now that the market is friendlier? Here are a few ideas which may help. Let’s start with location.

Decide what you want first. If it’s an old house you can rent rooms with shared facilities then you need an area where there are lots of students, or lots of people wanting that lifestyle such as casual workers or older citizens. If you seek a smart 2 bedroom unit to rent out until your daughter grows up, then you should find a snappy, smart street with double income couples and good rents.

Keep emotion out of the equation. It may be a beautiful late Victorian block of 6, but remember costs for upgrades, maintenance, aged plumbing and wiring etc.

Then do financial due diligence. Check potential rent income against all expenses, rates, taxes, interest, maintenance and insurance. Can you manage it without having to put more money in to prop up the investment, or can you manage a clever negative gearing. Don’t fall in love with a property before you do the numbers. Look at growth projections, vacancy rates, percentage of renters in the area, etc.

  Find out what your target rental market wants to then buy property that fits their demands. Always be prepared to sell when necessary, so keep an eye on property in high-risk areas.