Location, location, location

A typical cliché comment in real estate but it has its validity and reason!

What type of tenant are you trying to entice to rent your property?

What is the locality to public transport, schools and shopping centres?

Does the area have future growth potential for new infrastructure?

All key questions to ask yourself when looking at an Investment Properties location

Research & Analysis

The team at Novaturient have property advisors who do the hard work for you, seeking out the right property to suit you, your budget, your future, your roadmap

What is an Investment Property?

Investment property is real estate that is purchased with the intention of earning a financial return. The return can be through the form of a rental yield when the owner rents the property out on the long or short term market. Returns can also be through future gains where the property is sold at a later date for a profit.

Why purchase an investment property ?

Portfolio Diversification

Tangible Asset

Passive rental return

Long term capital growth

Tax Benefits

Control

5 points to consider before purchasing an investment property

1
Know your budget

It's critical to have a full understanding of your cash flow before investing in real estate. Also, getting a pre-approval for your investment loan from your bank or broker allows you to know what you have available to invest.

Property investment is a proven way to long-term prosperity, but you should consider it a medium to longer-term investment, so make sure you can afford to keep up with your mortgage payments in the long run.

2
Set some financial goals

Before you even step into some properties or check out some properties online, you should have a think about what your financial goals look like.

If you’re doing this with a partner or spouse, take some time to sit down and discuss and understand what you want your life to be like, what your future entails and where you want to be in 5,10,20 years etc.

3
Choosing the right home at the right price

Choosing a property that is more likely to gain in value is the most crucial decision you will make when investing in real estate, thus purchasing at the appropriate price is very critical.

Unlike shares, where the value of a company is transparent, real estate is more difficult to price; yet, if you are patient and smart, you can acquire an asset for less than its true market value.

The key for you is to do your homework, figure out what everything is selling for in and around the region, and you'll find that you'll soon be an expert at determining how much a property is worth – you'll recognise a good deal when you see one.

4
Buy smart, not emotionally

When purchasing an investment property, 90% of your decision should be based on reasoning while only 10% based on emotion.

Remember, this isn’t your family home, your forever home, or the home you’ll raise your family, this is your investment property.

5
Pick the right mortgage to suit you

When it comes to financing your investment property, there are a lot of possibilities, so get good guidance because it can make a major difference in your financial situation. It's remarkable how many people waste time investigating mortgages in order to save a few dollars a month, rather than investing that time researching their local real estate market, where they may make much higher gains.

Why save a few dollars here and there on your mortgage if you go out and spend 10-15% more on the property purchase from not doing sufficient research on the locality or demographic.

Need Help from Novaturient?

if you have any questions regarding our services, do not hesitate to contact us

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