There are many reasons to consider an investment property, but stepping into the world of real estate investment can be daunting. This article will cover the pros and cons of investing in real estate and even how to get started in property investment. So, if you are considering taking out a mortgage and securing a property investment, this is a great place to start.
Real estate is ‘bricks and mortar’—a physical asset you can see and touch.
The income from a rental property is passive—you can sit back as your investment property works for you.
There may be tax deductions, such as the interest you pay on your investment property loan and other deductions.
Your monthly rental income may not cover the cost of your mortgage repayments on the loan for your rental property.
The costs associated with getting into and out of an investment property can be considerable.
There may be additional costs for your rental property—including those of a property manager and ongoing maintenance
It is also important to consider choosing a real estate agent when searching for the best property for your needs—and then finding the right property management team once your investment property is secured.
But let’s start at the beginning. While you may know people that have an investment property or are looking at rental properties to invest in—they started somewhere. The question is how they got started with their first property investment.
First, you must determine whether you have the cash flow to afford a property investment and a mortgage. You can do this by seeing a mortgage broker and getting pre-approval for a loan—then, you can look for an investment property to meet your needs.
There are other factors to consider when choosing how to structure your mortgage for your investment property—but that can be the topic of another article.
So, let’s say you have secured the money to purchase a rental property; you now need to consider what is important to you concerning your investment property. Regarding your potential investment property, consider the rental property and its location.
When considering the physicality of your investment property, think about:
Size of development
Number of bedrooms
Parking and charging stations
Additional facilities such as a pool or tennis court
Type of kitchen
And regarding the location, it is important to consider:
Once you have a picture of what you are looking for in your investment property, or even before, it is a good idea to find a real estate agent you trust—someone with knowledge and experience in the area you want to purchase your investment property.
Maloney’s Property has the ability to assist you with your real estate investment, such as securing an investment property and offering ongoing support in the management of that property with our team of trusted property managers. We have built a reputation in the Canberra region as a knowledgeable team you can trust—perfect if you are beginning your journey into property investment.
Once you have purchased your investment property, you need to convert it to a rental property. This is where it is handy to place the leasing, legal and tenancy requirements in the hands of a reliable property manager from Maloney’s Property.
Your property manager can look after your property for between 8 and 12 percent of collected rent. And when you consider the time and knowledge required to take care of a rental property effectively, it is worth it.
But what exactly does a property manager do? Some of the main issues that a property manager looks after in a rental property include:
Advertising your rental property and finding you a tenant
Inspect the property and provide the owner with condition reports
Provide and manage tenancy agreements
Organise repairs and maintenance
This article covers some main issues about taking the plunge and purchasing an investment property. If you would like to discuss this further, contact one of our friendly team members at Maloney’s Property. They would love to sit down and chat with you about your move into property investment.