Buying your first investment property
When purchasing an investment property, location and prospects of capital gain based on past performance and future potential are the key factors. Additionally, the structure of the building and the amount of maintenance required prior to leasing should be considered as a priority. Ask your agent comparable rental data. Information can also be found on the major Real Estate websites. The average rental return or yield for the location can be determined from this data.
If buying in a block of units or flats, take note of the condition of the grounds and external areas of the buildings. This will determine how active the Owners Corporation is. The cost of the Owners Corporation fees can vary greatly and you must be careful to check their annual levy. This amount should be noted in the Section 32 Statement provided by the vendor’s solicitor / conveyancer.
Leasing your investment property
Management fees are charged by the agent to collect rent and arrange the maintenance required on the property, as well as applying the law in the case of rental arrears and any other issues that may arise.
Your agent will hand you a list of services they provide when managing your property. A good agent will ensure that your investment is well maintained to ensure the maximum increase in capital value over the years.
The agent may already have a database of potential tenants wanting to inspect your rental property. Your property’s online presentation with advertised viewing or ‘open for inspection’ times is imperative in achieving the best possible rental in the shortest time frame.
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