Generally, when buying an investment property, there is less emotion involved than when buying a home to live in. Obviously, you will want it to a good area, be of good quality, produce reliable yields and have potential for growth.
So, what are the types of things you should be considering when you are looking to purchase an investment property? Learn more in this video, where Joanne Danckwardt provides insights on this type of purchase.
If you are looking for an investment property to buy, request to be added to our open home alert
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Income and Capital Growth
Capital growth refers to the increase in the value of your rental property over time. As an example, if you invested in an apartment costing $500,000 two years ago, and sold it for $550,000 today, the apartment would have a capital growth of $50,000 or 10%.
Both capital growth and rental income rely on a number of factors such as:
- Location
- Recent sales prices in the area
- Current rental prices in the area
- Interest in the area – current and predicted future interest. Do your research, and find out what areas do well in the rental market.
- The type of property
- The amenities of the building if it's an apartment or amenities that are close by eg – schools, shops, transport,
Aesthetics
While it might not be a home for you, it will be a home for someone (your tenant!), so it should be appealing to a broad range of potential tenants. Make sure it is clean, well maintained and has a good layout. You should also consider the age of property.
Location, location, location
Location is key to valuable real estate. A great location will remain an asset no matter how the real estate market fluctuates in the future, meaning you don't have to predict the real estate market. Consider the accessibility to transport, shopping, schools and other amenities, the appearance of the neighbourhood, development plans, and area crime rates. Use the opportunity to visit open homes in the area, ensuring you know relevant questions to ask at an open home to obtain a clearer idea about the area.
Features
Ideally, you want the property to appeal to the greatest number of potential tenants of various ages and segments to ensure you have access to a wide market. Try to find a property that has something a little extra, for example, a 2nd bathroom, a lock up garage, or a study nook.
Long-term
Remember that property is a long-term investment. Ensure you can maintain repayments over the length of ownership. Budget for what might happen if the rent does not cover the mortgage, bills, rates, etc, and ensure you have a finance backup. Remember you should always factor in costs associated with buying when looking for an investment property.
If you are looking for an investment property to buy, request to be added to our open home alert
YES, ADD ME TO YOUR OPEN HOME ALERT
If you feel you could benefit from our experience with buying, selling, and property management we’d love to hear from you. Simply reach out or view our current for sale properties. We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771. We look forward to talking to you soon.
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In the ever-evolving world of property management, clients value certain qualities and services that distinguish outstanding property managers from the rest. Whether you're a landlord with multiple rental properties or an investor seeking to maximise returns on your investments, the objectives that are sought from the management of your property tends to be the same. Here is what some of our property management clients have shared are the top things they truly value when it comes to their investment property. 1. Excellent Communication One of the most consistent praises among clients is excellent communication from their property management team. Kris, for instance, highlighted that “great communication, prompt action on instructions and sound advice has afforded peace of mind”. It was a similar story for Patrick, who emphasised that everything needed to secure the best new tenants for his rental property was done. “Great communication throughout the whole process of changing tenants,” he said. Effective communication ensures that landlords are informed about every aspect of their property management, from tenant enquiries to maintenance updates, fostering trust and transparency in the landlord-property manager relationship. 2. Prompt Action and Responsiveness In the fast-paced world of property management, prompt action is invaluable. Kris appreciates the "prompt action on instructions," indicating that swift responses to queries and requests contribute significantly to client satisfaction. Andy , who has experience in the real estate market for more than 30 years and worked with a number of agencies in the area, echoed this sentiment. "My previous tenants, which Joanne recommended, were an absolute charm and left the property as good as when they entered," Andy said. "While they recently vacated, new tenants moved in the same week.” He said while the last tenants moved out due to downsizing, he praised the team for being “quick in managing the advertising campaign and very thorough with the selection process and recommendation”. 3. Sound Advice and Professionalism Another key theme that emerged from feedback from clients was how they valued property managers who offered sound advice backed by industry expertise, along with professionalism. Maggie described Joanne and the team as “streets ahead of any other agency I’ve had dealings with over many years in Sydney and Wollongong”. “Their commitment and personal touch are consistent and their professionalism always first class," Maggie said. "During our purchase period, ALL the staff were available for support and during a difficult market period they have sought a tenant for us and guided us through the process. "I look forward to a professional ongoing relationship.” This demonstrates the importance clients place on the professionalism and expertise of their property management team. 4. Personalised Service and Genuine Care Beyond professional expertise, clients value property managers who demonstrate genuine care and personalised service. And that goes for landlords and tenants, as expressed by Roger. "Regardless of my rental status, Joanne and her staff... were very respectful and made my experience trouble-free and quite enjoyable,” Roger said. He described the team as "extremely confident”, that he felt he was "always in safe hands during the process” and they “demonstrated a willingness to be of assistance and in an extremely professional manner”. “It was very pleasing to be find an agency that treated both landlord and tenant in such a respectful and efficient manner,” he said. This personal connection fosters a positive client experience and builds long-term relationships based on trust and mutual respect. What is it that you value? Is it also effective communication, prompt action, sound advice, and personalised service? By prioritising these qualities, property management teams can cultivate strong relationships with clients and deliver exceptional service that exceeds expectations. As evidenced by this glowing feedback, the right property management team can make all the difference in maximising the value and success of real estate investments. If you’re not a One Agency JD Property Agents client, but would like more information on our landlord services, contact us on 4285 7400 or via email. We are always happy to answer questions and offer advice, or offer a free rental property appraisal.
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We hope that has helped you today. If you have any questions, or you know of anyone who may benefit from our real estate services, we’d love to chat. Our number is 0426 264 771. We look forward to talking to you soon.