Residential Investment Property
Investor Point eNewsletter
Are you investing in property? Don't miss these tips! When searching for an investment property there are now great reasons to consider a brand new home. With Stockland, you will have the choice to purchase a property with features suited specifically to the tenants in the area, for the price you want and a home which looks spectacular.
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Revealed: The secrets to getting good tenants and keeping them
Investors are back - and many are now choosing new
Revealed: The secrets to getting good tenants and keeping them
Successful property investors know that there is nothing more important than maintaining a steady rental income from their properties.
That means thinking carefully about who their likely tenants will be and how much rent they're likely to receive well before making any purchase decision.
Like all markets, the rental market goes through regular ups and downs. The secret to safe and secure long-term property investing is getting good tenants and keeping them.
The following suggestions should help to maximise your rental income and make sure your investment property stands out from the crowd.
The first simple rule is that investment homes should be located where people want to live. That means being close to important lifestyle needs such as shopping, schools, child care centres, health services, parks, bikeways and public transport.
Next, your property should ideally be convenient to major urban centres where there is a wide range of economic activity, and therefore jobs.
A secluded beach house or hobby farm might appeal to you but finding a tenant for this type of property will inevitably be more difficult because the pool of people wanting to live that lifestyle is much smaller.
Look for homes that are located in growth areas where demand for housing will continue to increase. Also try to ensure that the home you're buying is appropriate for the type of people living in that community. For example, if most residents seem to be families then a three or four bedroom home might be a better option than a unit.
New master planned residential communities feature all new homes and new facilities such as parks, playground and walking paths within easy access. They are often located in high demand areas and set aside land for future requirements, such as new schools and shopping centres.
All this adds up to meeting both the immediate and future needs of your tenants. Remember, each time you change tenants there may be costs involved such as advertising and letting fees.
Once you've decided on a good location, the next step is to ensure your investment property will command a healthy rental return and attract a quality tenant that will look after your home.
New homes are designed for today's lifestyles and the outdoor living we all enjoy. They may feature flexible living options such as open plan living, media rooms, and a great outdoor entertaining space. They generally have a higher level of specification than older homes and more standard features.
For example, many new home and land packages come with bonuses and upgrades, such as stainless steel appliances and air conditioning. All of these extras will make your property more attractive to potential tenants.
New homes must also comply with guidelines that at make them more energy and water efficient than ever before. Improved energy and water efficiency will undoubtedly be attractive to your tenants because they will save money on household bills and be helping to save the planet at the same time!
Finally, new homes are designed to meet today's high building standards for structure, ventilation, sound insulation and fire safety so your tenants can enjoy a safe and secure living environment. As everything is brand new, there will also be fewer repairs and maintenance issues to interrupt your tenant's privacy.
A happy tenant who feels safe and loves their home and their community makes for a happy landlord.
Investors are back - and many are now choosing new
As the New Year unfolds and consumer confidence shows signs of improvement, investors are returning to Australia's property market.
The improving economic outlook, together with strong population growth and an underlying shortage of housing, suggests now is a great time to buy.
But investors still have to make sure they find the right property to suit their needs.
New homes arguably have several financial advantages over existing properties but are also ideal for anyone looking for an easily managed and low risk investment.
So what are some of the advantages of investing in a brand new home?
From a financial perspective, new rental homes usually have full depreciation allowances for building costs, fixtures and fittings which may be claimed as a tax deduction.
They may also be easier and cheaper to maintain because everything is new and shouldn't need repairing or replacing for many years.
In terms of risk, most new homes come with an insurance-backed warranty from the builder for a specified period of time for extra peace of mind. There is also less chance of encountering any unexpected problems such as termites or toxic building materials such as asbestos.
New homes offer the advantage of starting with a blank canvas. This allows you to create the right home for your budget and your future tenants from the outset rather than modifying your needs to fit an existing structure.
The actual process of building a new home is also much easier today than ever before. Many home and land packages now come with fixed prices and committed build times that provide certainty when it comes to your budget.
Home and land packages often come with all the extras like a driveway, floor coverings, fencing, water tank and even a letterbox so they are basically "rent ready" for your first tenants to move in.
Arranging finance for your brand new home has also become much simpler in recent years, thanks in part to specialist mortgage brokers such as Stockland Home Finance.
These brokers understand the process of home and land financing and provide a free service with access to hundreds of loans from over 20 lenders. They can also shoulder much of the early workload, such as helping you get documentation together for the bank.
New home buyers also avoid spending time and effort on renovations. The costs of renovating can be expensive when you consider refurbishing an entire kitchen or bathroom, painting over out-dated colours, changing the carpets or building a patio.
An existing home may also have been a rental property prior to your purchase. That means the previous owner most likely tried to minimise their spending on repairs and maintenance, which could now become your problem.
Stockland has more than 50 years experience in helping customers find the right home, in the right location, at the right price. We are able to show investors a great range of home and land packages that bring a very satisfying end to their investment home hunting.
