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Own an Investment Property

Purchasing a property for investment purposes can involve a different set of considerations compared to purchasing a home to live in. Here are some tips to get you started.

Which Rental Market?

First, decide if your property will cater for the budget rental market, mid-level rentals or the executive market. While the “executive” end of the rental market provides very good returns, it may not be suitable for the average investor. The market for high-rent properties is more fickle and hence you could find yourself without a tenant for a considerable period and no cash flow to meet mortgage repayments. At the budget end you are more likely to encounter higher tenant turnover.

What Type of Tenant?

Consider the type of tenant you intend to target. Are you looking for young couples with no children or will you focus on the family market? Units are good for business couples, while the typical house and garden is more suitable for families.

To minimize tenancy turnover and appeal to the higher caliber tenant, the property should be finished and presented to a standard that is more applicable to an owner-occupier. A relatively new or recently refurbished property, well decorated, with good quality fixtures and fittings is important to secure the right tenant who will stay for the longer term. Skimp on quality and you may end up paying more on regular maintenance and replacements.

Location, Location, Location

Once you have determined the type of property, the next step is location. A more attractive rental property will be close to public transport and good road systems. If your rental is family-focused you need to be sure it is close to schools, childcare facilities and sporting amenities.

Consider if there are places of employment in the close vicinity, such as industrial or commercial centres, attracting substantial numbers of employees – and potential tenants. What is the level of rental vacancies in the selected district?

For long-term capital growth seek an area with high trends in population growth. Take time to study which areas are proving popular and where local authorities are developing infrastructure.

Do It Yourself or Use An Agent?

Happy, contented tenants will look after your property, so good property management is essential. If you intend to do this yourself, be sure you are contactable 24/7 in the event of emergencies and have a list of trades people you can call for plumbing, electrical or building repairs. If you intend to use a property agent, check their background, experience and current management procedures. And shop around. Remember, to improve your chances of profit, property should be considered a long-term investment. With this in mind, it is worth putting in the extra legwork before you buy to help make a good investment decision.

To find out more about owning an investment property, call Opulent Finance on 03 8838 8726.

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Siraj Ahmed
Siraj Ahmed
2020-11-18
Verified review
Excellent service. Got us a great loan option and also worked with the bank to get the loan approved during the heights of COVID.
Dhruv Satra
Dhruv Satra
2020-11-18
Verified review
Malaka Ekanayake
Malaka Ekanayake
2020-11-10
Verified review
We have had a very pleasant experience working with Opulent Finance. We did not have that much experience with house loans as we were first home buyers but working with Opulent  Finance team specially with Ishara, made that experience stress free one. She helped us secure an incredibly competitive interest rate and offered her guidance so we can take advantage of the future interest rate drop. Thank you Ishara, Dayan and team for your incredible support and we have no hesitation what so ever in recommending Opulent Finance for your financial needs
Uma Gunaratne
Uma Gunaratne
2020-11-04
Verified review
Ishara is highly knowledgeable and if you are a first home buyer and new to the intricacies of all that home loans entail, she will really take you under her wing and impart her knowledge and experience and treat you as one of her own. She is also extremely patient but will also be very truthful and upfront in situations which is honestly what you need. She did a very complicated loan for us, and was so incredible efficient and organised with all the paperwork that was required. Not only that, she helped us secure an incredibly competitive interest rate! Ishara has probably spent hours and hours explaining to me details and giving me really good guidance through this momentous period in life! During the cooling off period and settlement, she was constantly chasing up our loan and honestly took a personal interest in the outcome. Our solicitor was also very happy about working with Ishara as she was following the entire process, was always up to date and very easy to work with. Considering that our entire process happened during the covid-19 lock-down and work from home environment, we have nothing but good things to say about how professional Ishara was as she didn't let a single thing slip. We are so glad that we have both Ishara and Dayan in our corner. We will definitely be using them for all future financing needs. Thank you Ishara, Dayan and team!
Harsha Ill
Harsha Ill
2020-10-11
Verified review
Opulent Finance gave professional advice for my unique home loan requirement. They respond quickly with the proper information. The process was smooth and I felt comfortable to deal with the team. The team is friendly and professional to deal with. Highly recommended for any one looking for finance.
S P
S P
2020-09-22
Verified review
I have been dealing with Ishara at Opulent Finance for over 6 months now and she has been faultless. She has helped me secure a loan pre-approval in no time and assisted me with my property purchases. I could not recommend Ishara highly enough.
Afshin Koohestani
Afshin Koohestani
2020-09-22
Verified review
Good service and offers.
Janaka Kumara
Janaka Kumara
2020-08-22
Verified review
A big shout out to Dayan and his team for the seamless service provided during the refinancing process. Thoroughly professional team that pays attention to every detail and has been extremely transparent throughout the process. A team that always has the best interest of clients in mind and makes all efforts to provide the right advise and outcomes to the clients. Highly recommended!
Rakesh Mistry
Rakesh Mistry
2020-08-19
Verified review
They called me back with solution
Indra Jaya
Indra Jaya
2020-08-12
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