Why is the decision to buy a home as an owner-occupier one that is as different as night and day from the decisions and factors involved when buying an investment property?
Basically, selecting the home you plan to live and create memories in comes down to a number of factors, many of them related to your own passions, dreams and wants. These can include:
- your preferred lifestyle
- your stage of life
- proximity to family, friends and work
- what you can afford
- property layout
- land size
- potential for improvement
- personal aesthetics in terms of façade and finishes
Importantly, the purchase of your own home is an emotional decision.
Most people can’t help but get attached and fall in love with places during the home buying process.
On the other hand, buying a home as an investment property should be about securing an asset for the purposes of generating a return on your investment, making money and ultimately building your wealth.
Buying an investment property is an investment in your future – and a good, solid one at that. Therefore that decision needs to be based on facts, not emotion.
Land Ahoy!
As the saying goes, land is the one thing they’re not making any more of. It is for this fundamental reason that investing is bricks and mortar is continually up there among the best investments.
Land is always in demand – as are quality dwellings. By purchasing land, you’re also giving yourself more scope to potentially add improvements. Where possible, try to buy a property with some component of land attached. Ideally a house. If not a house, then a townhouse or villa and so on.
Plus, owning an investment property can have tax advantages. Remember, just as each home is different, so is each person’s financial position. Therefore, always speak to your accountant or adviser about what specific tax advantages may apply to you.
Give the people what they want
While consumer behaviour can change so much, people will always need a place to call home. When choosing an investment property, put your own personal feelings aside and concentrate on facts, figures and gut instinct (this time in a business sense).
The first-time people buy an investment property, it’s easy to fall into the trap of searching for a place you can see yourself living in or lovingly renovating to your own standards.
This mindset can easily trip up newbie investors, who ignore a property’s downsides or invest in finishes that your average renter won’t appreciate or won’t withstand the natural wear-and-tear of transient residents.
Remove the emotion from the equation and be clear-minded about where there are in-demand rental areas and also, what renters would expect from a property.
In next week’s blog we will delve into what it is that renters expect and what makes a great investment property. Stay tuned!
Talk to Chamberlain Property Advocates about how we can help you find your next investment property.
Ask about our Investors Service, where we provide you with trusted impartial advice and WE MAKE IT EASY to protect your interests through out the entire investment buying process.
To book a free 30-minute consultation, simply click here and choose a time convenient to you. Alternatively, give me a call on 03 9686 2288 to discuss how I can help.
