Do your research before you buy your next investment property
This is a theme that we will be focusing on in coming editions as we show the importance of making decisions about investment properties from the head rather than from the heart.
Michael Levonis from Elliott Michaels Realtor at Southport has helped us out by providing a list of questions that you should ask of your property manager before investing in your next property:
- What is the demand for rental properties in the area – there is absolutely no point in buying an investment property in an area if there is no demand!
- How many rental properties are currently for rent in this suburb
- Do you predict the rental market will continue to grow in this area? Why or why not?
- What is the maximum rent that you would expect to receive for the property? How did you determine this figure?
- Will the rent achievable change in the near future?
- Are there any other properties that are currently for sale that would provide a higher rental return?
Finding the answers to these questions will go a long way to making buying an investment property a business decision rather than an emotional one!