Buying Investment Property
Unless you have been under a self-imposed media ban for the past 12 months, you will have noticed changes to the Melbourne real estate market and the way it is being discussed. Those of you are regular visitors to our posts will know that this is just an indication that the Melbourne market is moving into a different part of a continuous property cycle. For those who may be thinking it’s not time to jump into the market, then perhaps a different option might be more appealing.
Buying property doesn’t necessarily require you to make a move in dwellings – you could buy to invest.
There are some distinct advantages to buying with no intention to move into the property. While providing a start on the property ladder the purchase can be made with less emotion than when buying a home in which to live. The property will be chosen on its ‘rentability’ – a much more logical set of criteria. Look for strong rental yield and good tenancy rates. The amenities of the area will also be important – a country retreat may be your ultimate goal but this might not be the property for easy rental.
An investment property provides a rental income and this can help you service the mortgage on the property while you sit and watch your asset appreciate. Currently, many of the costs associated with owning a rental property, including the interest you pay on the loan, can have benefit to you at tax time.
Of course, there are always people who can help you through some of these decisions. Accrue Real Estate have been working to help people achieve their investment goals for many years.