Investing your money into property is a big decision. It can be tempting to think it's as simple as finding a deal then renting it out or selling it on. While that is the basic process, there's a lot to consider before you start viewing potential Bunbury real estate.
What kind of property are you planning to buy and how is it going to make you money? Know the answer to this question before you part with any money. An investment property can be about making money from rental income or turning a profit when selling.
Your strategy will determine what kind of property you look for, what areas of Bunbury you consider and your long term goals. You also need to do enough local research to back up your claims. It's all very well buying a property is a highly desirable rental area, but if the local vacancy rates are high, there may not be enough tenants to keep you in business.
When buyers are looking at properties to turn into a home, the decision isn't just financial. The property has to feel right, fit the family needs, be close to good schools and friends. When it comes to investment property, it's only about determining whether it's a sound move financially.
Buying decisions must be based around your strategy and potential for rental income and return. Whether or not you'd like to live there is largely irrelevant unless you are your target rental audience. The key questions to be asking when on the hunt for the perfect property are will the property attract tenants, and will your Bunbury real estate achieve a good return in the long run?
It takes time and effort to see a return from your investment property. Whether you plan to rent it out or sell it on, if you buy something in need of refurbishment, it will take weeks or even months to get the property into shape. If you're banking on new infrastructure bringing growth to the area, account for potential delays or for changing plans.
You also need to remember that when it comes to selling, markets fluctuate constantly. When you've refurbed a property to the standard required, it may not be the best time to put a house up for sale. For the best return, you need to be prepared to hold on if the market requires it – which means you must manage your cashflow and know what you can and can't afford.
Although some people do manage their properties by selling as quickly as they buy, there is likely to be some time investment required. Whether it's dealing with tenants, managing the redesign or liaising with local councils over planning permission, do you have the time?
If you're renting the property and your budget allows it, you can outsource to a Bunbury property management company to ease the load. Other responsibilities may not be so easy to delegate.
To discuss your investment plans, contact the Ray White Bunbury office for extensive local knowledge.