Buying in the same area you live in is often preferable, especially for a new investor, as it is easier to keep an eye on the property. Driving past the property regularly will help you stay on top of any potential problems. The location of the property is generally more important than whether it is a house or a flat.
Three or four bedroom homes are usually easier to rent and normally have a quicker chance of resale should you need to sell anytime in the future. Double income properties, for example, homes with a granny flat, often offer excellent rental yields. If you lease these at different times, then you won’t be down double income if both are vacant.
Look for properties that have an X factor. Can it be extended? Is it sub-divisible? Is its location superior? Look to the future as to what you could do with the property. Low maintenance cladding materials on the exterior of the home will help to reduce ongoing maintenance costs. Maintenance is not something you should take lightly.
Develop a relationship with your Mortgage Broker and Buyers Agent. They will save you time and money. Speak to them regularly about your future investment plans. Make sure organise your finance before you actually sign the agreement to minimise the conditions applicable. So many people forget to do this. Always keep accurate, complete and tidy tax records. Highly important!
Spread your investments. Target some properties with high yields and low potential for growth, and also target properties with lower yields and a higher potential for growth. A balanced portfolio is always a good idea. Make sure you follow a plan so you know what sort of property you will be buying next and why it will work for you.
Always be nice to your tenants. They will be nice to you in return.And always respond quickly to a tenant request.
Review your rental rates, both up and down, on a regular basis and according to the market. Work with your Property Manager to help you with this. Your property manager will have the market information and experience to help you to make the right decision for your investment.