- Get professional advice. Understand your financial position – now and in the future.
- Decide what’s important. Is it capital growth or income that is your priority?
- Talk to your bank. Find out how much you can borrow and what repayments are you comfortable with?
- Use your head. Don’t get too emotionally involved. Make a decision based on your objectives and desired financial return.
- Consider the tenant’s requirements. Talk to real estate agents about what tenants look for in property.
- Understand the depreciation benefits. Get a full depreciation schedule prepared.
- Understand cash flow and tax implications. Ensure you are fully aware of how your investment property will impact the rest of your financial circumstances.
- Get your numbers right. Don’t forget all the costs like stamp duty, solicitor’s fees, body corporation levies, council and water rates, insurance, interest on loans, repairs and maintenance, land tax and others.
- Look at the long term. The greatest benefit is derived over the long term – usually 7 – 10 years or longer.
For more information on building an investment property please contact the team at Single Builders.