Owning an investment property (or several) can be a sound way to secure your financial future. If you’re deciding whether to build or buy, you will be tossing up both the pros and the cons of each option. Check out our basic guide to building or buying an investment property in Newcastle to help find the solution best for you.
Top Tips For Building An Investment Property
Build For The Market
Speak with your local real estate agent to get an understanding of the local market at the time you’re looking at building. This will allow you to get a feel for the area and build to the demographic, i.e. families, retirees or students.
For example: Near a university you might build a house with several bedrooms, perfect for sharing. If you’re building for families, you’ll want to ensure you build near schools, shops and transport.
Build With Your Head, Not Your Heart
Remember, this isn’t a property you’re going to live in. Unless you’re aiming for a high-end market, you’ll want basic fittings and fixtures to avoid overcapitalising.
Invest In Quality
Can’t decide between plush carpeting or the stain-resistant type? Although you always hope for brilliant tenants, sometimes it doesn’t work out that way. Choose options that are hard-wearing—lino or tiles are also a great option.
Find A Builder
Finding a builder you can trust is the first step in building your investment property. Ensure you view past examples of their work and see if a fixed-price build can be negotiated.
Are you looking for the perfect builder to construct your investment property? Find a construction company near you on LocalSearch, such as these Newcastle builders.
Top Tips For Buying An Investment Property
Although you may love the bronze features in the bathroom, remember it won’t be you living in the property. Choose a property with neutral features, including walls, flooring and fixtures so they are more appealing to a wider audience of potential renters.
Buy Inside Your Means
It may seem like a great idea to buy that waterfront property, but there are additional costs associated with the investment. These include council rates, water bills (you may not be able to charge your tenant usage), potential body-corporate fees, as well as maintenance to the property if it’s an older home.
Research The Property
Before you sign on the dotted line, make sure you know everything about the property. Find out why it’s being sold, any past problems, the quality of the neighbourhood, as well as having it thoroughly inspected for termites, building faults or issues.
Find A Real Estate Agent
When you’re looking at buying an investment property, make sure you invest some time in finding an excellent real estate agent. Check they know the area well, know exactly what you’re looking for, and have a good reputation for being fair and honest.
Are you looking for a real estate agent? Check out LocalSearch to find the right one for you, such as these Newcastle real estate agencies.
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