Purchasing an investment property is one of the biggest decisions that people will often make in their life, outside of getting married, having children and a multitude of other big events that can take place. As your managing agent we do appreciate that you have already gone through this process in owning your current investment property. However, we wanted to share some important information that can assist you in your future purchases of investments.
The most important guidance is to always seek advice from an expert on the different stages during the transaction. A salesperson is knowledgeable on the local sales market and contract processes. However, more often than not they are not as experienced on the rental market with regard to desired features of a property and the rental appraisal as a property manager.
When you are next considering purchasing an investment property take a moment to ask your property manager these questions:
- What is the demand for rental properties in this area?
- How many rental properties are currently for rent in this suburb?
- Do you predict the rental market will continue to grow in this area? Why or Why not?
- What type of tenant would the property attract?
- What is the maximum rent you can achieve for this property? How did you determine this figure?
- Will the rent achievable change in the near future?
- Are there any other properties currently for sale that would provide a higher rental return?
Asking these questions will provide you with further information, allowing you to make a more educated decision when purchasing an investment property.
