C&G’s Guide: What to Look for in an Investment Property

Melbourne’s property market is going strong, making it a wonderful opportunity to enter the market and build your wealth. While it won’t be your home, your investment property is still an important and expensive asset that will impact you financially. In this latest C&G blog, we list the questions you should ask yourself – and your property agent! – when deciding on an investment property.

Where is the property located?

Location is a particularly important consideration when purchasing an investment property. Many tenants base their decisions around location, and a desirable spot will certainly guarantee you a rewarding return on your investment. People may be looking for something that allows an easy commute to work, or simply enjoy the lifestyle offered by the suburb. Access to public transport, dining, entertainment complexes and shopping centres will also make excellent selling points when attracting tenants. If you own a home and wish to appeal to growing families, ensure a school is located within the neighbourhood. Likewise, a property within close distance to a university or training institute will always attract students.

What features does the property come with?

Many tenants look for a long-term rental that they can turn into a home, therefore may already have a criteria when they begin their property search. If your investment property boasts features such as energy-efficiency, integrated appliances and spaciousness, you will be a step above your competition. Do consider the age and condition of the property as well. Just like selling a home, sprucing up your space and repairing any damages before entering the market will attract more high-quality tenants.

What is the area’s vacancy rate?

Minimise your vacancy window by finding an area that enjoys high demand and low vacancy rates. This is a good indicator that your property will enjoy a steady flow of reliable tenants over time. This often increases competition amongst renters, and you’ll have a better chance at securing a reliable lease.

What were the recent sale and rental prices?

Have comparable properties in the area increased in price or demand? We recommend speaking to a property manager who has a sound understanding of the neighbourhood’s history and demographics. They’ll be able to assess your investment and provide a competitive rental price.

Ready to build your property portfolio? The friendly team at Chisholm and Gamon live and breathe property, and would be delighted to help you find the ideal investment! Reach out today.