If you have finally decided to acquire a property as a form of investment, there is much to consider, but that should not put you off, as many Australians have developed a profitable property portfolio, with a few clever purchases along the way. Like any other investment, buying a home to rent out requires a lot of research, and with that in mind, here is a guide to help you get your foot onto the rental property ladder.
- Know your Budget – It is oh so easy to commit to purchasing a property when you haven’t fully taken into account the many expenses involved with buying rental property. There are legal fees, and by sourcing a reputable conveyancing law firm, such as https://www.rivercityconveyancing.com.au/, who happen to be one of Brisbane’s top law firms that help people to buy and sell real estate. Let us not forget stamp duty, then you have all the costs involved when you renovate the property and are looking for tenants. You will also have to furnish the property, in order to make it an attractive offer to a tenant.
- Be Realistic About your Long-Term Goals – It is easy to look at things in a positive manner, yet one should not let one’s imagination rule in such a situation. Assuming that you have crunched the numbers and can afford the acquisition, set yourself attainable goals, and work towards those. You must factor property maintenance into the equation, and while the rental is coming in every month, there will be maintenance costs and other expenses involved in maintaining an attractive residence.
- Analyse the Market – Look at the location you have chosen and find out what the top rental figures you could ask for in such a location, and make sure that the property is in very good condition; something the local conveyancing firm can help you with. If, for example, you are looking to attract a professional family, then make sure there is good schooling nearby, and with a little planning, you can find the ideal rental property.
- Commission Building Surveys – Regardless of the age or the size of the property, you are advised to have the property surveyed prior to making any offers, which will ensure that the house is structurally sound and is in good order. This is something that a reputable Conveyancing law firm would do on your behalf, and they have a wealth of experience in carrying out building surveys of all kinds.
It is important to fully do your research and after crunching all the numbers, you need to be sure that you have the ability to purchase and renovate the property, while also covering the many other costs that go with buying a rental home. One needs to keep one’s feet firmly on the ground when looking to acquire rental property, and with a lot of planning and research, you can take the first steps towards becoming a property landlord.