Tips for the first time investor
Whether you're planning to make southeast Queensland your home or just a place to pursue profit, the golden sand and endless sunshine in Surfers Paradise offers up some great opportunities for property buyers from all over the world. If you're new to the investment game in Australia, there is a wide selection of things to consider before laying your money down on a slick apartment in Surfers Paradise or established home.
Like with any purchase, you'll need to do your research and make sure you're financially sorted for this next step on the property ladder. Here are a few crucial things to keep in mind when investing in real estate in Surfers Paradise for the first time.
What makes Surfers Paradise property great?
A well chosen property in the Sunshine State can give you great returns and financial security. However, if you're investing for the first time you aren't likely to have the depth and wealth of knowledge that a seasoned investor is likely to have – especially when it comes to picking a suitable property. Selecting a standout piece of real estate isn't easy for even the most experienced buyer, but this is equally so for the first time buyer.
You need to enter into the search with a calm head and a clear set of objectives. Understanding what direction you want your investment to take can make the property hunt far less strenuous. For example, rather than be charmed by the first attractive property you stumble across, take a look at it objectively. Will it appeal to your target audience? What capital costs are involved with set up and purchase? It's worth getting advice on this matter, as well. Figuring out an investment strategy won't only help you locate a good property, it can set the foundation for a profitable investment future.
Location is one of the most important factors in purchasing rentals in Surfers Paradise. Glance over vacancy figures, rents and house prices for the area you are interested in. These can give some indication of demand and how well the market is faring in your particular suburb – but be aware that long term trends often reveal the bigger picture. Price cycles can often suggest where growth is about to take off and when it is beginning to taper.
Think about what your tenants will appreciate in a property. Are they family-orientated or young professionals? Are there features in the surrounding area that will particularly appeal to one group over another? Understanding each of these factors will set some guidelines for the type of property you choose.
However, investment isn't just about data and statistics. There's also an element of intuition that comes with experience. An emerging area might be just around the corner, ripe for the taking – but without an intimate knowledge of an area, you aren't likely to realise it. For this reasons it's vital to get advice from your real estate agent to help steer you in the right direction. They can decipher the figures for you, as well as provide handy insights into tenant profiles and behaviour in your preferred area.
Do your math homework
Your finances should be top of the agenda when investing in Surfers Paradise property. Crunch the numbers and figure out what you can realistically afford – both now and in the long term. First time investors can sometimes overlook the ongoing costs of managing an investment property, so make sure you've got experts on your side throughout the process. Check what tax benefits you can get and be aware of the charges for, among other things, insurance, mortgage payments, local government rates, body corporate fees or utility bills.
Property management is a great option to help you balance all these costs with your long term goals. If you're after some assistance for your first time investment, get in touch with the team at Ray White Surfers Paradise.