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  1. Property investment guide

Property investment guide

So you’ve decided you’re ready to invest in property. Here’s what to consider next.

Investing in property is a choice that many people make to increase their long-term wealth. There are many ways to go about this, but the most common is by taking out home loans for investors. If you’ve chosen to take that step, here are the next things to consider:

Where to buy

Once you’ve decided to invest in a property, one of your biggest decisions is where to buy. There are several factors to take into account which include:

  • Are you familiar with the area? Buying in an area you know can cut down on your research time and make you feel more comfortable with your purchase.
  • Is the suburb growing? A more likely way to make money from a property is to buy in a growing, up and coming suburb.
  • Is the property close to schools, shops, transport and other infrastructure?
  • What is the area’s rental vacancy rate? What is the rental yield? Do some research on the area’s vacancy rates: a high vacancy rate in rental properties can mean the area isn’t in demand. This in turn can make it hard to rent out or sell the property.
  • What’s happening in the future? Look carefully at any proposed changes in the area, because these may affect the property’s future value.

The features of your investment

While location is a major priority, the property itself isn’t a decision to be taken lightly. It’s best made with a lot of thought for practicalities and finances, and without emotion.

When looking at the features of the property you’re considering, consider which aspect of the rental market those features will appeal to – for example, singles, couples or families. It’s a good idea to aim for features that will appeal to more than one target market to increase your chances of securing good tenants. You’ll also want something that’s easy to maintain so you can keep costs down.

Picture life as a landlord

Managing an investment property involves finding tenants, collecting rent, conducting inspections and coordinating maintenance. Many people outsource the bulk of their investment property management; it’s worth meeting with some potential property managers to find one who you feel will represent you effectively.

Whether you manage your property yourself or outsource this job, it’s important to note that you will have a set of responsibilities as a landlord. Make yourself familiar with these as you move through the investment process, so that you’re prepared.

Plan your finances

There are a few financial steps to go through when stepping into the world of property investments:

  • Plan for the costs of buying an investment property. These costs can include a deposit, stamp duty, legal fees and conveyancing fees. You can calculate potential up-front costs using our calculator
  • Plan for ongoing costs associated with your property, including council rates, insurance, repairs and maintenance, utilities charges, property management fees and mortgage repayments. You can calculate your estimated mortgage repayments using our calculator.
  • Speak to a trusted financial advisor about the best ways to manage your property purchase and investor home loans. That might include negative gearing subject to legislative changes, utilising the equity in another property you own, tax implications, and strategies for managing your rental income.
  • Choose the right investment home loan.

    Australian Unity’s investment loans could be just the right fit you’re looking for.

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Any advice does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you and read the relevant terms and conditions (including Terms of Use), any Product Disclosure Statement (if applicable) and Financial Services Guide before acquiring any product.