Just like everywhere else in the world there are good times to buy and great times to buy, but in Australia there is never really a bad time when it comes to buying an investment property. Although there can often be a quiet time in the market, property cannot disappear like other investments and providing you do not over commit you will nearly always have a solid investment. It is just a matter of deciding what you want and then doing your homework as to the best areas for your chosen project.
Depending on the types of property you have in mind, it is wise to do quite a bit of research especially if you are not familiar with the area. One of your first investments may be to purchase some Real Estate Investing Software. These software packages can help with feasibility, analysis and so on. Contacting real estate agents in the area and speaking to them in depth regarding property prices, highs and lows in the market, growth areas and any expected changed to the area is another must. These agents can also give you a good idea regarding any outgoings associated with properties such as rates, strata levies and water rates in the area.
Types of Investment Property in Australia
When thinking of investing in property in Australia there are different ways to invest. You can buy commercial property such as factory sites, offices or buildings used for retail outlets. Another option is to buy a unit or flat ranging from a studio apartment to one having 3 bedrooms. These units can range considerably in price depending on size and position but are usually easily tenanted and bring good rents. Alternatively, you could buy a duplex (semi detached house) or a freestanding house. Again these range in size from a one bedroom cottage to the more common 3 plus bedroom home being the most common. Another good way of buying an investment property in Australia is to buy a property that needs work. You can often buy these properties and very reasonable rate and by doing some renovations yourself can increase the market values of the property considerably. It is amazing what a kitchen and bathroom renovation, a coat of paint and new floor coverings can do. Add some curb appeal by doing up the front, maintaining a nice garden and front yard.
Rental properties are always in high demand and buying a property to rent out has many benefits not only in paying your monthly mortgage payment but also in the many tax benefits gained from having an investment property. These properties can be positively geared or negatively geared depending on how you wish to set up and how much money you put into the property initially. Speaking to your accountant about your particular circumstances as well as the real estate agents will help guide you which way to go. Subscribe to magazines, read local papers and get a feel for an area before taking the final step.
