ASK A C21 AGENT: I am looking to invest in real estate. What are the most important factors to consider when purchasing an investment property?
The purchase of an investment property should always be an investment based decision, rather than an emotional one. Prior to starting your property search, you need to know what your financial position is and determine what you can afford. Seek advice from a financial advisor to evaluate your financial situation. It is crucial that you understand the investment process, explore mortgage options and interest rates.
Location is a key factor when purchasing an investment property: consider proximity to amenities, transport and future developments. Conduct market research by analysing property values, rental amounts, vacancy rates and return on investment. Take advantage of tax benefits such as using depreciation as a tax deduction.
A well structured budget will help manage on-going expenses such as rates, insurance, maintenance and property management fees. Always engage a real estate professional such as a property manager who can help you mitigate risks and to achieve your goals.