Greg Trembath answers your real estate questions.
Q: I have decided to buy my first investment property in the Port Macquarie area. What should I be looking for?
It’s important that you clearly establish what you want to achieve by this investment – are you looking to accrue profit in the short term (say 5 years or less), do you aim to invest for retirement income, or do you have other short or long term goals?
With your investment strategy in mind, you can then start to research the market to help you choose the type of property to suit.
Think like a savvy investor and focus on the rental income. Find out why certain properties achieve such a good yield. Put yourself in the potential tenant’s shoes and consider what would influence your decision if you were looking to rent in the area.
My short list of ‘must haves’ for investment properties include:
Comfort – everyone wants it. Make sure the living space allows for flexible furniture options to appeal to a broad spectrum of prospective tenants.
Location – proximity to schools, shops, transport, beaches and waterways provide maximum appeal for tenants, and it’s LOCATION that drives future capital growth.
Low maintenance – good tenants avoid homes that clearly need repairs or require a lot of upkeep by them. As the owner, you will also want to minimise maintenance costs eating into your income.
Investing in property can be a highly rewarding experience. Don’t be afraid to take each step slowly, and make sure you check your facts with experienced advisors.
Answers are general comment and readers should always seek their own independent professional advice.
Send your real estate questions to firstname.lastname@example.org
Greg Trembath is Co-Principal at Laing+Simmons Port Macquarie
Licensed Real Estate Agent – Licensed Auctioneer.