How to choose the best investment property

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Investing in property is one of the most popular ways for Australians to grow their wealth. However, with rising property prices and a field of competitive investors looking to outbid you, how can you add the right property to your portfolio? Here are four key focus areas to help you choose the best investment property.

1. Great location is often worth the higher price

The old adage of “location, location, location” still rings true when it comes to property. Particularly as an investor, you want to purchase a property that will make tenants highly competitive. Buying in a less-desirable area may be cheaper upfront, but it probably won’t deliver the same returns.

So when you start scouring the market for potential properties, focus on capital growth. You’ll want to look at areas that have well developed infrastructure, a growing population and plenty of essential amenities nearby. Homes that are close to the beach or have great views are always a plus – but be aware the price tag will match.

2. Look for a low-maintenance, turnkey property

It might be a “renovator’s dream” but do you really want to spend months of your own time, plus tens of thousands of dollars, just getting a cheap investment up to liveable standard? Of course, it all depends on what you are looking for in a property, but generally you’ll want to be able to turn your initial investment into an income-generating asset as soon as possible.

So look for homes that are already in great condition and need few – if any – upgrades in order to put it up for lease. Also be cautious of homes that require lots of upkeep, such as those with sprawling gardens or large pools.

3. Reduce investment stresses with a property manager

Just because you want to invest in property doesn’t mean you have to become a landlord as well. Once you find your ideal house or apartment, think about the value in hiring a property manager.

These real estate experts can take all the difficult tasks off your plate in exchange for payment, for which you can claim a deduction at tax time. They act as an intermediary between you and the tenant, and they will also know what you should do to get the most value out of your investment property.

4. Seek expert advice to make money from your investment

Once you fully own the investment property, it actually ends up being quite inexpensive to hold as an asset. This is because you will be earning rent and getting tax breaks every financial year. There are other costs you will need to factor in though, such as the initial stamp duty, right through to ongoing expenses like council rates and capital gains when you decide to sell the asset. Make sure you speak to a financial expert who understands property investments before you take the plunge.

Hallmark has the expertise to find you the right investment property

Hallmark Consulting has a wealth of experience working with investors to help them purchase the right properties for their portfolios.

“We handpick strong investment opportunities around Australia and provide our clients with exclusive access,” says Daran Thomson, Managing Director at Hallmark Consulting. “You can even leverage your superannuation to invest in properties under $500,000. We are currently doing this for a number of our existing clients while exploring new growth areas across Queensland.”

Are you ready to start investing in property, or do you need support to build out your current portfolio? Contact Hallmark Consulting or call 1300 135 295 to get started.