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.
Here’s 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!