So you’ve saved up some money and are now thinking about investing it in property, smart idea. For the first time investor it can be quite a troublesome time trying to figure out what a good rental property actually looks like. Today I’m going to give you a few ideas on what you need to be keeping an eye out for, when looking to invest in your first rental property.
Is the property high maintenance?
You’d ideally want your first real estate investment to be easy and straight forward, the last thing you’d want are several spanners in the works, which will leave your mouth with a bad taste about making future real estate investments. Working a full-time job, having a family, and fixing up a 2nd home is not the smartest thing for a first time investor.
Go for a simple house, something that doesn’t need any repairs or major home improvements, it might not be as fun but it will be so much easier to manage. Think of your first investment as a learning curve, and don’t bite off more than you can chew.
Buy rentable homes
Picking a two-bedroom house has a wider mass market appeal then a 4 or 5-bedroom property. Unless you live near a university and are thinking of renting out to students, smaller homes are going to get you tenants faster. Put it this way, a huge 5-bedroom house is only going to appeal to large families, whereas a cosy 2-bedroom is suitable for singles, friends, small families, and couples.
People like living near the beach and cities, properties around the Sunshine, Gold Coast, and Brisbane are going be more “rentable” then a house 50km-100km inland.
Picking the right area
This is a no brainer, but look around to see if there’re many schools in the area, supermarkets and things to do. You need to think about what your tenants needs are. Areas of low crime so its safe for children to play on the streets, good transport links around the town, hospitals and parks are all factors that you should research before picking your location for rental property.
Look into future developments and the job market, Brisbane is currently one of the fastest growing cities in the world. That’s the kind of signs you want to be looking out for when deciding what area to invest in.
Don’t rush to make your first investment, it can be an exciting time and occasionally buyers don’t stop and assess the whole situation. You have to make sure the purchase is economically viable for you, and that you will see a return. I know some investors that get twitchy after a few months of searching and not finding something, but sometimes that just how it goes. The smart investor waits for the right opportunity and pounces, and even so, a few months is not going to make a whole lot of difference in relation to your return on investment.
Even following these guidelines you still need to be vigilant and smart, sometimes speaking to an expert in the area of real estate investing can open your eyes and give you direction. Our team at Assets Agents have been helping people in and around Queensland for years, on choosing the right real estate investments for them. We can also advise you, all you have to do is pick up the phone and ask. Feel free to contact us today!