Buying investment property in Sydney can be overwhelming. There’s a lot to consider and it’s tough to pick the right property.
However, with some preparation and the help of a qualified buyer’s agent, you can feel confident about your investment purchase. Here, we’re going over how you can get started today.
Follow these steps to determine the right investment property in Sydney
1. Set Your Budget
The first way to narrow down your options to help you choose the right investment property in Sydney is to set your budget. After all, it won’t really be worth your while if you can’t afford the properties you’re interested in.
To set a budget, you’ll have to be realistic, overestimate expenses and understand what exactly you need in an investment property.
Start by being realistic about your budget. How much do you make? Are you able to borrow any loans? How much can you start saving for future investments?
Begin by having a savings goal (which should be at least 20% of a down payment) and figure out how you can realistically achieve that goal.
In setting your budget, you’ll also want to overestimate expenses. When buying an investment property in Sydney, chances are you’ll deal with unforeseen circumstances that can hit your wallet hard.
So, it’s always best to overestimate how much it’ll cost you to invest in property and, in the end, if you don’t use those extra funds, you can always pay down your loans a bit faster or get started on renovations to create a more lucrative rental property to put on the market.
2. Understand What You Need
Finally, it’s so important to get a good understanding of what you need from an investment property.
Are you looking to build your net worth or balance cash flow? Do you want to optimise your tax bracket? Interested in buying property and holding onto it? Maybe you want to flip and sell an investment property in Sydney for a quick profit...
Understanding what you need will definitely help you build a proper budget and, in turn, will help you pick the right investment property for you.
3. Understand the Area
The next step towards picking the right investment property in Sydney is to understand the area. Which suburbs should you invest in? Why does one suburb provide better investment opportunities than another?
You’ll want to check out the median house prices as well as median rental prices if you’re planning to rent your investment property to tenants. Check out the schools, council and public amenities in the area and see what the future plans are for its infrastructure.
By understanding the area in which you intend to buy, you’re more likely to make an educated choice about the right investment property for you.
4. Save Time
If you’ve ever looked into buying investment property in Sydney, you’ll know that it takes ages to pour through listings, attend inspections and meet with lenders. Buyer’s agents do the hard yards for you, helping you find lucrative properties that fit within your budget and stipulations.
And since we all know that time is money, the extensive amount of time saved by working with a buyer’s agent is worth a lot.
5. Save Money
In addition to saving your time, buyer’s agents also help you save money.
They find hidden gems and off-market investment property Sydney-wide that you wouldn’t be able to find otherwise. Plus, they’ll negotiate for better deals on your behalf and make sure you’re not buying a money pit.
Not only that, but our Wealth 360° buyer’s agents sometimes even make money for our clients in the property investment process.
So, while it might be an upfront cost to hire an expert buyer’s agent, it’s almost certain that you’ll save money in the long run with their expertise on your side.
6. Work with a trusted buyer's agent
Buying an investment property in Sydney can be stressful, no matter how many times you’ve done it or how prepared you think you are. This is why it's important to find trustworthy buyer’s agents who can help you ensure that you’re getting the best price and you’re not being hit with hidden fees or sketchy deals.
By taking some of the pressure off, you’ll have greater mental clarity and, in turn, are more likely to make better purchasing decisions. It's worth investing in your peace of mind. Hiring buyer’s agents can protect you from headaches and help you make investments without all the stress.