Residential Investment Property

Going direct to the developer and builder may save you tens of thousands of dollars by not having to pay for middleman costs. Most developers and builders provide services for investors to help them select an investment property that suits their budget, investment needs and is fair market value. Some investors find that their property value is well under the purchase price which is in many cases due to the extra fees that they unknowingly paid.

When choosing investment properties key fundamentals such as infrastructure, demographics, supply and demand will drive the success or failure of your investment. Also consider the number of investment properties available for rent and the demand for rentals in the area. Plus you should assess the growth potential and the resale value of your property in the future. If you are buying a house or unit, your ability to borrow 80% or more on the investment may be a good indicator whether or not the bank thinks this asset will achieve any capital growth.

Seeking formal advice from a financial planner can add real value to your broader investment plans. Financial planners can show you options you hadn't considered, highlight the tricks and traps of investing, and help finetune your strategy so you stay on track to reach your goals. Your financial planner will work with your mortgage broker and accountant to deliver expert advice on your property investment.

Check that your financial planner and mortgage broker hold current licenses and this can be easily checked on www.asic.gov.au website.

Buying a house is a significant financial investment so it's important to find a builder that has a solid track record and the strength to survive when times are tougher. Do your research, ask for credentials and consider the builders' previous successes or pitfalls before committing your money.

With so much to consider when buying property it can be difficult to understand what your real out-of-pocket expenses will be each month. Ask us for more information about how to evaluate the real cost of owning an investment property or consult a qualified financial planner.

Protect yourself against any surprises by knowing exactly what you're getting, when, and how much it will cost. Will you need to purchase blinds, build a fence or pay for kitchen appliances? Stockland can provide home and land packages with fixed prices and inclusions to help manage your costs of construction.

Your existing financial situation will determine how much you can borrow, and knowing this upfront will save you time and energy in your property search. Consult an independent mortgage broker to help you establish your borrowing capacity and let us help you compare options from nearly 30 lenders simultaneously.

People invest for different reasons. Depending on your goals you may want to reduce your income tax, secure your financial future by having another income stream after retirement, move into the property one day or get extra money in your pocket today. To get the most value you should be clear about your expectations, and consult a professional financial planner if required.

What's right for you will be determined by several factors, including why you're investing (see 6 above). You will need to understand the local area, what types of people are living there, what rental repayments they can afford, and what facilities are available such as schools and shops which will draw tenants to this area well into the future. We can provide you with free market information so email us at investmentproperty@stockland.com.au to receive your free information sheet.