Buying a rental property is usually a long-term investment, and as such, it requires long-term planning. Making a mistake when purchasing a rental property can have dire financial consequences, so it’s important to take the time to really consider your wants, need and goals to ensure you make the right decisions. PRD are the property managers Wagga property investors turn to for expert real estate services. If you are looking to purchase an investment property in Wagga, here’s a few questions to help you make well-informed decisions and ensure your investment is a success.
What Are My Financial Goals?
Before purchasing rental properties in Wagga, you should ask yourself the below:
· Do you see the rental property as additional income every month?
· Do you want to make a quick profit by flipping a property?
· Is it going to be a long-term investment, where you see the home appreciating in value?
The answers to these questions will help both you and your agent find the perfect Wagga investment property for your financial goals.
Have I Considered the Extra Expenses?
When buying a rental property, it’s important to understand that it isn’t just the purchase price you need to consider. While you may be able to make the mortgage repayments with ease, here are just a few additional expenses that you will likely encounter:
· Property Taxes
· Property Management Fees
· Body Corporation Fees (if your property is part of a body corporate)
· Maintenance and Repairs
These costs can add up significantly each year, so it’s essential that you are aware of these and have a reserve fund put aside to cover them, and any other unforeseen expenses you may come across.
In Which Location Should I Buy?
Who is your target market? If you would like families with children to rent your property, consider buying an investment property in a quiet, family-friendly Wagga neighborhood close to schools, parks, and playgrounds. Alternatively, if you want to appeal to young professionals, consider buying a property in Central, with the CBD, shops, restaurants, and cafes within close proximity.
Should I Buy an Older Property?
Older properties have their advantages, their elegance and character attract a wide range of tenants and you may pick up a bargain with many first-home buyers preferring a shiny, new dwelling over a tired, older home. An old home gives you the opportunity to improve its value by making minor updates and this can increase your returns for both capital growth and rental income.
However, they also come with the risk of needing significant repairs or maintenance. Having to renew the roof or repair rising damp in the first few months of ownership can significantly impact your profit and damage your cash flow. Before you buy an older-style investment property, engage a professional building inspector to conduct a thorough inspection of the property to find any potential problems.
Who Will Manage My Property?
Do you have the time and knowledge to manage the property yourself or will you hire a property manager? If you plan to go it on your own, you will need to have a sound understanding of rental laws, know how to market your property to get the right tenants, vet tenants, collect rental income, arrange inspections and organize ongoing maintenance and repairs. All of this takes time and experience in order for it to be done correctly.
If you choose to hire a property manager, you will need to research local management companies to find the right one and understand their fees so you can add that to your expenses.
The Property Managers Wagga Trusts
If you’d like to get some individual advice on the best location to buy an investment property or to engage a highly skilled team to manage your Wagga properties for rent, please feel free to contact PRD today on (02) 6923 3555 or send us an enquiry online. We are happy to have a chat over the phone or meet with you to discuss your requirements.