Investors’ Guide
Know before you venture to property investments.
For the
When you are buying an investment property it’s best to think with your head and not with your heart. The purpose of investing in property is to maximise your returns and not to find a property that you will spend the rest of your life living in.
To minimise your risks, research the area you intend investing in and the current state of the property market.
To start your search, pick suburbs or areas you wish to invest in. These may include areas close to the CBD or a trendy café strip or areas currently experiencing population growth caused by increased industry activity, such as mining. Also consider proximity to transport, shops and leisure facilities.
Make sure you factor in all the associated costs such as maintenance, repairs and stamp duty when calculating your buying price range. Many investors also allow for a minimum of four weeks each year when they may not receive rent because of a changeover of tenants. Be realistic about what rental returns you will have on the property and make sure you research what the market is currently paying.
If you’re investing in a unit or townhouse, it may be worthwhile getting an appraisal of the body corporate records. A search agent will provide you with a comprehensive written report on the state of affairs of the building, allowing you to make an informed decision to purchase.
This is a brief overview of a few ways to get started, remember to obtain independent financial advice before making any decisions.
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