If you're fortunate enough to be buying your own home — and you're ready to take the plunge to buy an investment property, we've got eight tips (you knew there was going to be a list) that we think are going to help you beat the market.
1. Learn about property investment
If you’re new to property investment, it’s time to get some advice. Ask friends and family members who have bought investment properties if they have any advice. Talk to property advisors, financial planners and look through the huge amounts of information available in magazines and online.2. Know how much you have to invest
While a more expensive property may give you a better return, there’s no point in looking at expensive houses that are completely out of your price range. Talk to a lender or mortgage broker first, and find out how much you can afford to spend.3. Don’t forget about the maintenance
While it may be tempting to use all of your savings as the deposit for your investment loan, make sure you keep some funds aside to cover repairs and maintenance costs.4. Pick the right location
You might enjoy living in quiet areas away from the noise of trains, schools and shopping centres. But to attract the most interest you should be looking for an investment property that has plenty of features, which could well mean being close to schools, shops and public transport.5. Don’t let your heart rule your head
During your search you may stumble across the kind of house you’ve always dreamed of living in. But remember: you won’t be living in this one—someone else will be. So make sure you choose a property that will appeal to as many people as possible.6. Get a professional to conduct a building and pest inspection
While the property may seem to be structurally sound, the freshly painted walls may well be hiding a multitude of problems. So get a building and pest inspection done so you know exactly what you’re buying. And if it does pick up any problems, you can either get them fixed or walk away from the sale.7. Leave the repairs to the experts
Unless you’re a DIY expert (and not just in your own opinion), leave the repairs to the professionals. They’ll do a much better job, and chances are it will be cheaper to get the job done right the first time than it will doing it yourself and then having to get someone to repair your mistakes.8. Use a property manager
Buying an investment property is a lot different to buying your own home. You have to find the right tenants, organise repairs and maintenance, arrange and conduct inspections, collect the rent, etc. And unless you have the time and the knowledge to do it all yourself, you’re much better off paying a property manager to do it all for you.We sourced our tips from Bank of Queensland and we're happy to plug their investment loans help page here. There's even a free app, powered by RP Data, which is great for checking the history of any property you're interested in.
