Got an investment property in your sights? Before you pound the pavement or consider signing anything, consider these handy tips from buyer’s agent Josh Masters from Empire Property.
Tip 1: Get confirmation of the strata fees.
When buying a unit or an apartment, it’s important to understand the property’s ongoing costs, including strata fees, property maintenance fees and whether there are any special levies planned or being paid.
Tip 2: Request a price guide.
Ask for a ballpark figure from the real estate agent or vendor (if buying privately) but keep in mind that it’s common practice to under quote to the tune of about 10% of the purchase price. If the price guide is at the top of your budget, you may be wasting your me on a property you can’t afford.
Tip 3: As or a rental estimate on the property.
Knowing the amount of income that the property could generate today and in the future will help you build a picture of how much you can expect to generate from the investment as well as your overall cash flow.
Tip 4: Find o t how many nits there are in the building.
Smaller buildings can make for a more manageable investment, as there are fewer people to deal with when things need to get done. Their boutique feel also means they can be more attractive to tenants who are looking for a more in mate, homely place to live in.
Tip 5: Confirm the property’s size.
Ultimately we all love space, so it’s no surprise that the larger the floor size, the more we’re usually willing to pay. Valuers also take a serious view on square metreage, and often use size to calculate the value of a property – especially useful if you’re looking to refinance with your lender.
Tip 6: Check the security of the unit or apartment.
This is an important point when looking to attract the right kind of tenants, and it’s especially important if you’re looking to attract female tenants. While it can also be a point of convenience, features such as an internal laundry, security car space within the building or security intercom can make a big difference.
Tip 7: Learn about the property’s tenancy history.
Is the unit or apartment tenanted, or being sold as a vacant property? If the property is already tenanted, find out what they are paying. Is there a rental contract in place? When does it expire?
You could find that the tenants are pre-commited to paying a significantly low rent, which could affect your rental yield.