Property Investment Checklist for Ensuring A Profitable Property Purchase

Question 1

Is the property you are looking at close to existing or planned infrastructure?

Tenants will be more readily attracted to your investment property if they know that infrastructure is already in place or if the infrastructure is being planned.

Question 2

What transport options are available to your tenants?

You will need to assess what transport options are available to your tenants such as:

  • Train lines
  • Major arterial roads
  • Road networks
  • Freeway access
  • Footpaths
  • Cycle paths


Question 3

How many rental properties are available in the area?

You should look at suburbs and locations where there is a high demand for rental properties. It is important because it will offer you with good opportunities and also decrease the likelihood of your investment property sitting vacant for any length of time.

Question 4

What are the property prices of the area?

You should look at suburbs and locations where there is evidence of consistent and steady increase in property prices and try to avoid areas that have suffered from plummeting price drops.

Question 5

What are the benefits of buying a new or established investment property?

You should carefully weigh up the benefits of buying a new investment property versus an established investment property (i.e. as new property can provide considerable tax benefits and advantages).

Question 6

What is the demographic breakdown of the area?

You want your investment property to be located in a neighbourhood that is welcoming to your tenants and where you have an improved chance for resale. So, when considering a suburb or location you should research:

  • The number of owner occupiers in the area;
  • The number of investors in the area;
  • If there is any evidence of public housing in the area; and
  • The overall presentation of the suburb and the surrounding suburb.


Question 7

How does your investment property compare to the market average of similar homes in the area?

It is always a good idea to compare your property to other similar homes in the area to make sure that your investment property is accurately priced.

Question 8

Is your investment property in an area which will appeal to families?

Because families are considered to be stable tenants, you should look at suburbs or locations that attract and cater well for families.

Question 9

How much land is available in the area?

You should consider looking at:

  • Buying land in a new land estate where there is a healthy supply of land, as this is a good indicator of future growth
  • Buying land in an established, sought-after suburb or location. It may prove to be a smart investment, as a decreasing supply of land can push up the value of your investment property.


Question 10

Have you considered the potential capital growth and rental yield of your investment property?

When evaluating your investment property, make sure your property is strong in both the following areas:

  • The potential for capital growth
  • The potential for a high rental yield

Choosing an investment property that suits your needs is a major financial decision. So, don’t rush into anything too quickly. Always remember that while you are shopping around for a suitable investment property, do your research.

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