Choosing The Right Investment Property To Get The Best Return What to look for when buying an investment property: location, property type and upkeep.

Investing in property has proven a hugely successful financial pursuit in recent years, with over 1.8 million Australians currently owning an investment property. Offering a wide range of benefits from a consistent passive income to the several tax benefits you may accrue, property investment is a fantastic method of making your money work for you! However, these investments are only effective when you invest in the property that is right for you.

In choosing your investment property, there are a number of factors you need to keep in mind, and it’s natural for you to think, “is there a mortgage broker near me to help me through this process?”. Thankfully there is, and the team at Greenline Home Loans has devised the following tips to help you make these important financial decisions.

Desired Location

Where you’re a pair of first home buyers or a seasoned investment professional, an absolutely crucial factor to consider is location. When you’re searching for your investment property, you must ensure you select a location that has both tenancy demand to secure the property’s immediate future, and owner-occupier demand to ensure you will be able to sell the property in the future.

A deal-breaker on location is its proximity to transport links to ensure a smooth and easy commute for your tenants, whilst also ensuring that key lifestyle facilities are within arms reach of the property. These may include parks, shopping centres, restaurants and cafes. The closer your investment property is to these key facilities, the higher your rental yield is likely to be.

It’s important to also consider whether the area is likely to provide you with capital growth, as choosing the right location can account for 80% of your property’s capital growth. By investing in a growing locality, most favourably before it is subject to high demand, is a great way to ensure your investment property experiences capital growth throughout the duration of your investment.

Property Type

In searching for your investment property, it’s vital that you consider which property type will suit your budget, but also the demand conditions that the location is likely to be subject to in the future. For instance, investing in an area with an older population may mean that investment into a townhouse property spanning over three levels may not be the wisest investment decision.

By the same token, investing in an area populated by young families of first home buyers and high tenancy demand makes the purchase of a property with ample living space a suitable decision. To maximise the return you receive on your investment, it’s always important to purchase a property that is likely to satisfy the demands of the individuals most likely to reside within the area. Contacting the expert team at Greenline will help you gain a greater understanding of the demographics and demand patterns within your chosen area, and help you determine whether an apartment, house, or townhouse will best suit your expectations and the market demand.

Maintenance Requirements

Once you’ve decided upon the location and type of property you’d like to invest in, you must consider the additional costs and maintenance that will be associated with the occupancy of the property, just as you would if you were moving in yourself. Keep in mind that a home with a large garden and swimming pool will require greater effort and cost in preparing it for tenancy, and by holding greater maintenance requirements, you may be limiting your potential pool of tenants.

Similarly, an apartment situated in a luxurious complex with multiple, high-quality communal amenities will result in higher strata fees, and these expenses must be covered by the property owner rather than the tenant. This would limit your potential return and subject you to high recurring financial costs. Generally, investment into properties with minimal maintenance requirements and ongoing costs makes for a sound investment decision that will maximise your return.

Why Choose Greenline For Your Investment Property Home Loans?

Before you invest in a property, it’s crucial that you contact an expert team of lending professionals who can offer you individualised, specialist advice on your investment. If you require an investment property home loan to help finance the purchase of your additional property, look no further than Greenline, as we offer the lower rates on these all-important home loans, helping you secure your financial future with minimal hassle.

With many lenders in the market offering their services, it can be difficult to know which company is right for you. However, if you’d like to invest in property but you’re in need of expert advice from a company that will make the process easy to understand and reduce your stress, a simple search for a “mortgage broker near me” will direct you to our devoted team of professionals.

Reach out to Greenline Home Loans today!