Watch time: 2:30 mins
Hi my name is Colleen Sutherland, I am the principal of Sutherlands Property Management.
I often get asked about what my top five tips for purchasing an investment property would be. So I thought I would put it together in this blog to share some information with you!
To seek professional advice from your Accountant or Financial Advisor (Remember an investment property is a purchase to make with your head and not your heart!). This is so they can help you to get the purchasing structure right. This starts with the name or entity you are intending to put on the contract, to the structuring of the loan and through to the budget and investment plan going forward.
Research the area that you are looking to purchase in. This is not limited to just the changes in prices but should also include analysing rental yield, the vacancy rates and average days on market.
If you are an investor looking to purchase and have a few properties on the short list, we are happy to help you get an understanding on how your prospective investment stacks up against these statistics.
Make sure you have a full understanding of the outgoing’s of the property. This is not just the mortgage. The outgoing‘s will include the rates, the water, insurances and any body corporate charges if they apply to your prospective investment. This information is really handy when deciding if you can afford the property and whether it best suits your goals moving forward.
The next step is to create a budget. This budget could include things that you need to do when you first purchased the property like new carpets or painting and any projected big to let Items that are likely going to need replacing in the short to medium term.
The final tip is to get a Tax Depreciation Schedule. This report is compiled Buy a quantity surveyor and it is given to your accountant in order to maximize the tax benefits that available to you in the entity that you have purchased the property within. We are happy to point you in the direction a good quantity surveyor if you don’t have one already!
For more information on professional property management for your investment property, call us today on 07 5535 8554.
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