Published On: Wed, Nov 21st, 2018

Investing in Australia – A Short Guide on Effective Real Estate Property Management

Let’s face it, the real reason you are here reading this article is because you’re interested to invest in Australia’s real estate sector. After all, the Land Down Under is quite the popular destination for real estate investments– for example, you may have a little extra money for a house and lot and have it rented out. After a couple of years, you’ll realize that you’re profiting off of your purchase big time.  

While investing in residential areas is easier to understand compared to others, there are still several key issues to look out for. In common cases, you have to at least be knowledgeable about the local real estate market, as well as the property procedures involved before you can even think of your future real estate profits. And then there’s budgeting your finances, acquiring residential licenses, securing bank loans… Your to-do list just keeps getting longer.

You’ve made the final decision to invest in real estate property in Australia but you’re still wondering why you’re stuck in a daze. What should you do next?

Real Estate Property Management

Tip 1. Make sure to invest in a familiar and booming real estate market.

Investing in a familiar market simply means that you should buy property in a location you’re already familiar with. This is equivalent to less research, less stress, and less pressure for you, since you are already likely aware about the sale prices in the area.

However, being familiar with the real estate market is not enough when deciding to shell out a huge amount of money. You also have to pinpoint an area where high growth is expected (typically those situated in the suburban neighbourhood) for you to maximize your potential capital gains.


 

For instance, if you are looking for a house and lot to buy in Penrith, NSW, you need to look at where the community is and the amenities included if you purchase from there. Communities like Jordan Springs is conveniently located near schools, malls, and the business district. These are examples of elements that need to influence your buying decision.

 

Ask questions – Is it important that it is a master-planned community? How accessible are shopping and dining centres? What are the deed restrictions?

Tip 2. Familiarize yourself with the property’s rental yields and vacancy rates.

Rental yields are basically the determining factor if a property is profitable or not. It measures how much income is generated each year when calculated as a percentage of the property value. It is recommended to look for residences where the rental yield is high.

Vacancy rates are also as important as rental yields. These figures allow you to get a better idea if the neighbourhood is a desirable market for estate purchasing or not. Get all these data first before beginning to invest in a residence.

 

Tip 3. Plan your real estate purchase well.

This tip is a no-brainer, but it doesn’t hurt to remind you nonetheless. Consult with a real estate advisor, talk to relatives and friends, and be wary about the surroundings of the neighbourhood you’re planning to invest in. To be more specific, it is recommended for you to research thoroughly on possible changes within the target residential area that may affect property sale prices.

Are there new developments that are bound to happen within the foreseeable future? Ask, research, and plan it out by creating a purchase matrix. Ideally, purchase matrices paint a clearer picture for you to reach your goal of producing your target income.

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