How To Buy Your First Rental Property

Investing in rental real estate is a great way to generate income. If you are smart about where you decide to invest, you can have passive income for many years while your investment increases in value over time. When the time is right, you can sell the property at a profit or use the income as part of your retirement package. When you are starting out, it is hard to know exactly what to invest in. At Property Point we believe that everyone can profitably invest in rental real estate. Read on to find out how.

1. Understand the cashflow

You need to understand the cash flow (how money moves to and from the property). This comes in the form of income (rentals) and expenditures (mortgage payments, utility bills, rates). In the early years, you can expect lower profits or a slight loss but eventually, things will even out, and you will start to make significant profits. At Property Point we can help you understand your expected cashflow so that you are aware of what your financial investment entails before you buy a rental property.

2. Choose the right property

Choosing the right property is key to reaping financial benefits in the future. The type of property that you will buy will be determined by the reasons why you want to invest. Some properties are more suited for long term returns, some are better for high cash flows, and some will produce significant returns sooner than others. Even so, some properties are better to invest in those others. At Property Point we can help you choose the right property so that you reap the benefits of your investment.

3. Get the location right

Rental properties all have one thing in common, location is key. The perfect location depends on the type of client that you would like to target. If you want to target families, for example, you need to aim for a location that is close to schools, parks and public transport. For young professionals, you may want to opt for a location that is close to the city and has a vibrant social scene. You also need to anticipate the needs of your tenants so that your property is attractive and offers them exactly what they will want.

4. Get something low maintenance

High maintenance properties are the bane of any property investor’s life. You do not want to invest in a property that needs constant fixing and repairing. Your tenants will also not appreciate having you show up all the time. To save yourself this stress, look for properties that are relatively brand new and that have a property inside which will be under warranty for the first few years.

At Property Point we specialise in finding and buying commercial and domestic properties for clients. We have a fully qualified team of industry experts that can make this process much easier for you. Contact us today!