Tags: Investment, RefinancingMarket Update | 14.08.13

How to maximise your potential investment property income

The theory of property investment is simple – buy a house, rent it out, sell at a profit. However, the reality is less straightforward. Here are our tips for planning your investment property strategy.

Your ultimate aim is to invest in property with the potential to appreciate in value. You then either sell the property at a profit or refinance, using the resulting equity to purchase other properties. The assumption inherent in this scenario of course is that your property will always increase in value. This of course, is not always the case and is why you need to carefully plan your investment strategy.

Cast a wide net

Property prices in the major cities are high and for many people, out of reach. Consider buying in cities and areas that have not yet experienced a ‘boom’ in property prices. Take a top down approach and research by state, city, suburb, street and individual property. Look at current and expected population levels and wages and local industry growth. Then consider current and projected house prices, the availability of public transport, schools and other amenities as well as the types of properties available. Determine which properties are more likely to perform well, hone your strategy and as with any other property purchase, take your time. Don’t buy for the sake of buying or because a property appears to be a bargain and keep your overall investment aims clearly in mind.

Ride the growth cycle

Once you’ve been successful with one property, turn your focus to the next ‘boom’ area and continue investing. Plan your finances carefully so you can ride the growth cycle, maximising your potential profit. You’ll of course need a home loan to finance your initial investment so contact us for your best home loan rate.

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