Investment property checklist

Investment property checklist

A few tips to consider before you invest.

Whether you’re looking to start investing or wanting to grow your portfolio, it is a great idea to ensure that you have all your ducks in row. To help you get ready to invest, check out some of our recommended tips below.

Have you determined your budget for investments?

A crucial early step to investing is getting your budget sorted. Are you aware of how much you are spending? Are you capable of spending less than you earn? Do you have a deposit saved? At the end of each month – how much spare money do you have to pay for your loans?

Once you have determined your budget and what you are able to spend, you will be able to narrow down your property search to best suit what you can afford.

Have you selected the best mortgage option?

Have you done your research and shopped around for the best mortgage option suited to you? 

If you have done your own research, but still aren’t sure, professional advice is always encouraged. You could go directly to the bank you already have a loan with if you own other investments or it may be worth reaching out to a Mortgage Broker and utilising their services to acquire the best mortgage for you. 

Have you considered the location of the property?

Location, location, location! It’s safe to say, properties closer to the likes of the city or the beach will yield higher return. Properties in highly sought-after suburbs will also come with a higher purchase price, so consider their neighbouring suburbs when looking at investment properties. 

Is the house a couple of km’s away with the same number of bedrooms, bathrooms and car spaces more suited to your budget than the one that is a few metres away from that coffee shop near the beach that does the best lattes in town? A quick drive, a nice walk or a bike ride will still get you there.

Have you found a quality house that falls inside your budget?

That’s it, you’ve found it! It ticks all the boxes and it’s ready for your future tenant to move in to…but wait a minute – have you checked that it comfortably falls within your budget? 

If you’ve accounted for any works that need to be done prior to leasing the property and you can afford to make the repayments, pay the outgoings, plus upkeep or any maintenance required in the future, comfortably, you may be onto a winner!

Have you evaluated the property for structural soundness?

Prior to signing any contracts, it is important to do your due diligence and check your potential new investment property thoroughly. 

When inspecting the property, it is important to make sure that facilities are in working order. Check if the toilet flushes properly, how strong the water pressure is and if there any signs of mould or salt damp. 

If there are any concerns with the structural soundness of the property, it is always worth looking at investing in the services of a building and pest inspector. They will be able to compile a report for you and highlight any areas of concern prior to purchasing the property.

Have you determined what maintenance the property needs and accounted for it in your long-term planning?

You must remember that although you’re buying the property as an investment, somebody else will call it home. Will there be a lot of ongoing maintenance the property requires in the future? 

Does the property have a large front and backyard that needs to be mowed often? Do the gutters fill up quickly, are there over hanging trees to cause them to block easily? Does the house overheat in summer because the air-conditioning unit does not sufficiently cool the home? 

It is important to keep in mind the type of investment you’re purchasing. If it’s an older home that needs a bit of TLC, be mindful that you may have a tenant reaching out to the Property Manager every now and then to have things fixed or updated. 

If you’re interested in finding out the benefits of having your investment property managed through Fox Real Estate, contact our Business Development Manager for Property Management – Andrew Geppa, today.

Disclaimer: All information provided has been obtained from sources deemed reliable, however, we cannot guarantee the information is accurate and we accept no liability for any errors or oversights. Interested parties should make their own enquiries and obtain their own legal advice. 

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