The Dos And Don’ts Of Buying Investment Property

Whether you’re buying your first investment property or adding to your portfolio, it’s no secret that buying an investment property is exciting. However, if you want your investment property to be a reliable source of passive income, you’ll need to understand what it takes to choose a good investment. The team at Strictly Conveyancing have been working within conveyancing in Bella Vista for years, and we’ve worked with individuals buying investment property countless times, so we’ve learned a bit about the dos and don’ts of investing in real estate.

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Why Do You Need A Conveyancer To Buy Investment Property?

Conveyancing is an important part of the buying process, and our team is here to help make everything streamlined and straightforward.

  • We’ll help with the contracts. Once you receive the contract, we’ll look over it to advise you of the terms, conditions and obligations, making sure there’s no unfair clauses or caveats hidden within the document. We can also add special conditions and negotiate terms with the seller’s conveyancer if necessary.
  • We’ll conduct searches and adjustments. Our team will take care of the essential searches and prepare a statement of adjustments so we can take care of debt or negative interest. We’ll take care of title searches, local authority searches, pest searches and assess the structure and any risk to the property. We can also take care of strata searches if you’re purchasing an apartment.
  • We’ll guide the whole process. We’re here to make sure you have support fulfilling the conditions of your contract, so we’ll double-check that all the boxes are ticked to send the contract to the seller’s conveyancer.
  • We’ll make sure settlement day runs smoothly. On the settlement date, we’ll make sure the sellers receive the full agreed-upon amount, and we’ll work with the seller’s conveyancer to make sure all necessary legal paperwork has been submitted properly.

How To Choose The Best Area For An Investment Property

When looking for investment properties, you don’t necessarily want to look in areas you like or places you’d live, as these might not offer the best returns. Instead, check off the following criteria to ensure you’re investing wisely.

  • Follow the infrastructure. Nothing drives property prices quite like infrastructure, and a lot of experienced investors will look at areas with a lot of current or planned development. Wherever the government is planning infrastructure upgrades is a sign of an upcoming real estate hot spot.
    Look for growth. Areas with capital growth always have great potential for investors. So look for suburbs or neighbourhoods with population and economic growth.
  • Look at the rental yield trends. You don’t want to invest in a property that will not offer good yields; it’ll cost more to maintain and keep than it’s worth! So do your homework and find out which areas offer the best return on investment.
  • Try to buy near the city or near the beach. The most profitable investments will come from areas near major cities or near the coast, especially if the property boasts views of either.
  • Look for transport options. Try to make your investment property as transport-versatile as possible. Even if there is a garage or parking available, aim to buy somewhere close to buses, trains, trams, or ferries.
    The more competitive the rental market, the better. Ideally, you want to invest in an area with low vacancy rates to reduce the time your property spends empty when you’re between tenants.
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The Dos And Don’ts Of Buying Investment Property

There are a few things you should do (and some you shouldn’t) to make sure you invest in the right property.

  • DO: Have a good property manager in mind.
    • Unless you plan on managing your own property, you should know which property management company to whom you want to entrust your investment.
  • DON’T: Buy based on your own taste.
    • Not everyone will have the same taste in property, so why buy something perfectly suited to you? When looking for an investment, keep an eye out for a neutral, clean, high-quality property in a booming suburb.
  • DO: Use your equity from other properties.
    • Unless this is your first home, you may be able to leverage the equity in your current home or other investments to buy the new one. Have a chat with your lender about your options.
  • DON’T: Believe bigger is always better.
    • A house or apartment doesn’t have to be massive to be a good investment. Smaller properties have just as much earning potential as larger ones, and it’s all about how and who you’re marketing toward.
  • DO: Trust the numbers.
    • When doing your research, take careful note of the statistics and numbers, as they won’t lie. The best way to predict how an investment property will perform is by using the existing data.
  • DON’T: Avoid professional advice.
    • Buying property is complicated, and if you’re looking to invest and build a portfolio, you will need to hire a range of professionals to make good decisions. When it comes to conveyancing in Bella Vista, Strictly Conveyancing are here to offer professional advice and guide you through the process, so you have more time to speak to and learn from other real estate professionals.

When You Need Help With Conveyancing In Bella Vista, Contact Strictly Conveyancing

Since 2006, Strictly Conveyancing has provided a range of services in property and conveyancing in Bella Vista and the surrounding areas. Whether you’re buying or selling property, it’s our mission to help make the complexities of the process a breeze so you can focus on other aspects of the purchase or sale. Our Australian-owned and family-operated conveyancing practice is award-winning, and when you see how committed we are to our clients and their needs, you’ll understand why we’ve built such a strong reputation in the area. So if you’re after a conveyancer in Bella Vista, don’t hesitate to reach out to the team at Strictly Conveyancing.

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  02 9630 5333

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