Season’s Greetings! Here’s to a prosperous 2020!

With 2019 drawing to a close, we hope you’re shifting into holiday mode and getting ready to relax and unwind.

 

It only seems like only yesterday that the RBA cut the official cash rate for the first time in almost three years. But that was more than six months ago, and the RBA has cut the rate another two times since.

Now the official cash rate is sitting at a new record low of 0.75% – and financial markets now believe there’s a 45% chance of a rate cut when the RBA Board next meets in February.

But enough about rate cuts

Whether you’re celebrating the festive season with family and friends, getting away somewhere nice and relaxing, or working through, we hope you have a wonderful end to 2019

And while you’re enjoying your holiday break,  take the opportunity to review your finances and make some plans for the new year.   If you need to check anything finance-related, please don’t hesitate to reach out to us.   We look forward to working with you again in the year ahead.

So here’s to a prosperous 2020!

 

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Ever dreamed of starting your own business?

Ever been tempted to tell the boss you’re leaving to start your own business?   You’re not alone.  In fact, more than nine million Aussies dream about becoming their own boss.

However, the biggest hurdle for 60% of those people (5.4 million) is ‘access to money’, according to research commissioned by the Australian Banking Association (ABA).

The percentage is even higher for women and young people. Indeed, two-thirds of women and people aged 18 to 34 believe access to finance is stopping them from fulfilling their entrepreneurial dreams.

What’s holding most people back?

It’s fair to say there’s no shortage of entrepreneurial self-promoters plugging their brands on Instagram and LinkedIn these days, which could give you the impression that plenty of people are reaching out for business finance.

But small business loan applications have actually declined by 33% since 2014, according to the ABA report.

That is despite 94% of small business loans being approved by lenders, not to mention record low interest rates.

“There could be many reasons for the downturn, including people believing that they won’t get a loan, thinking it takes too long, deeming the application process is too complex, or they’re simply borrowing money from other sources,” acknowledges ABA CEO Anna Bligh.

Why seek finance?

Well, besides obtaining access to the initial capital that’ll allow you to become your own boss, business finance can also allow you to grow your business more quickly.

That’s important, because the bigger your business, the better its chance of survival.

For example, while almost two-thirds of businesses in Australia are sole traders, only 60% of sole traders who were operating in June 2014 were still in business by June 2018.

That number increased to 70% for businesses with 1-4 employees, 78% for 5-19 employees, and 82% for 20+ employees.

Meanwhile, the main reasons businesses seek finance are to maintain short-term cash flow or liquidity (40%), to ensure the survival of business (32%) and to replace equipment or machinery (24%).

Want to get started?

To help prospective small business owners the ABA has created an educational website, which includes a suite of resources demystifying business financing.

Once you think you’re ready to apply for finance, get in touch.     We can review your current financial position and recommend the most appropriate options available to you.   This includes accessing equity in your home at home loan rates.

Just email or call us,  we’d love to help !

 

 

 

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How to transform your rental property into an Airbnb sensation

Each year, tens of thousands of Australians list their properties on Airbnb and are making the switch from long term rental to short term stays.    Below are our top five tips on how to  make your property stand head and shoulders above your competition.

Most people who own an investment property prefer to rent it out long term.  It’s more a set and forget approach.  But for some,  short term letting on platforms such as Airbnb and Stayz is becoming an increasingly appealing option providing additional income and flexibility.

In fact, in 2017 more than 30,000 people listed their homes on Airbnb across Sydney and Melbourne alone.

Below are our top 5 tips on how to transform your property into an Airbnb sensation :

1. Professional photos

First impressions last, and these days the first impression is the website impression of your Airbnb property.

A good photographer has the skills and equipment to highlight the beautiful little details that makes your property sing, and crop out the less  desirable qualities that may turn a potential guest away.

Obtaining high quality images from a professional real estate photographer can be relatively easy, and costs between $150-$300 via websites such as Snappr or Airtasker.

Even if they get you just one extra two to three night booking they’ll have already paid themselves off.

2. Your guests home away from home

There’s no point in having a photographer take wonderful photos of your property only for the guest to show up and feel like they’ve been conned!

You’ll need to put in that extra bit of effort to make their stay memorable. After all, they’ve chosen your place ahead of a hotel,  and all their other Airbnb options.

There’s a good chance your guest is from out of town and visiting your local area.  So try and include local artwork, local guidebooks and information including transport options.

Install comfortable and luxurious bedding and the bathroom should also always be spotless with quality bath towels.  Make sure good quality tea and coffee is available, and ensure all the basic kitchenware is easy to find.

Other tips include providing menus for local takeaway, tips for local sightseeing, entertainment, basic electrical appliances, and some cleaning equipment and products.

3. Play host, but don’t  be That host

It’s important that you’re available to your guest should they need to  query anything.

That may range from “where is the frying pan?” all the way to “where’s the local hospital?”.

It’s critical that you never show irritation towards your guest, no matter how trivial or inconsiderate a inquiry might appear.

That’s because one scathing review can undo a lot of the money, time and effort you’ve invested into building your reputation.

However, it is equally important to give your guest the privacy they require. Be on hand to offer any simple suggestions,but don’t pin them down for hours  chatting  about your own travels.

This is their holiday after all!

4. Consider using a property management service

If  hosting isn’t for you it is worth considering outsourcing your property management to a professional service.

Cath and the team at  Citysleepz   look after a number of our clients properties.  They offer a wide range of services including bookings management,  guest sceening and communication, the meet and greet of clients as well as  the maintenance and cleaning of the property.

Additionally it is important to have the right insurance cover  for your property.  A popular choice with our clients is  Coverwise insurance.  This agency offers a range of covers including Landlord and Building Insurance, Owner Occupied Household  Insurance and Tenant  Insurance.

5. Thank guests for their reviews

Taking the time out to thank every single guest for their review shows you’re a super attentive host who’s always aiming to please.

Additionally, it also gives you the opportunity to further highlight the positive aspects of your property.

For example, if a guest writes in their review that they had great ocean reviews, reply: “Thanks for the review Craig! Stoked that you enjoyed the ocean views from your bedroom!”

The best thing about this trick is that it even works for negative reviews.

That’s because most negative reviews will also mention something positive about the property.    So make sure you thank them for that, acknowledge their complaint and thank them for bringing it to your attention, and advise that you’ve taken steps to rectify the issue for future guests (and actually do so!).

This shows other guests that you’re a very reasonable person who takes all concerns seriously – and will be approachable if they need you during their stay.

Guess who else is approachable?

We are!

If you have any queries or questions about your property and think we might be able to help out, don’t hesitate to get in touch –  we’d love to help out.   Just call us.

 

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

 

3 ways to improve your home without breaking the bank

You’ve probably been reading a whole bunch of doom and gloom about the property market being in a slump.  Despite this back drop  you can rest assured that its not the end of property as an investment.    Instead, property values may simply returning to the levels seen in 2016.

The good news is that with a bit of creativity  you may be able to increase the price of your property.

And there are key things you can do to improve the value of your home or investment property.

Below are three ways you can increase the value of your property, without  breaking the bank.

 

1.Gardening and landscaping 

It’s time to get those hands dirty!

The good news is that one of the fastest ways to  increase the ‘wow’ factor of your property is to give it a good manicure.

Green is in.  Gardening can be relatively cheap, costing only a little time and creativity to trim any overgrown bushes and redo  the garden bed.

If you don’t have the tools for the job, or you’re simply more of an indoors person, consider hiring a landscaper to help out.

 

2.Fresh paint  and new designs

One of the best ways to make the interior of your house feel fresher is to call in the painters.   Employ an interior designer to give you a fresh new palette of colours to brighten up your home.

The same goes for artwork. Make your home stands out by giving it a bit of character, and it’s not like you have break the bank for an original Olsen.

There are hundreds of talented local artists selling art –  and you can also rent artworks.    Your designer will be able to assist with  art selection.

There’s nothing worse than stepping into someone’s home and having to walk on dirty and stained floor coverings.

It is a sure way to make a perspective buyer immediately uninterested and they’re likely to wonder what’s wrong with the other aspects of the house that they can’t see.

Having a fresh and modern platform for a prospective buyer to stand upon can make a big difference.  You can pick up new floors either from your local hardware store or online.

So, if it’s within your budget, consider giving this part of your property a makeover !

 

3.Bathroom bonanza and my kitchen rules

The bathroom and kitchen are  often rooms that a make or break  a property.

If your bathrooms are moderately new, pay some professional cleaners to come in and get the place sparkling.

Similarly,  there’s no need to rip out the whole kitchen.  Look at ways you can revitalise it with  minimal expense such as  replacing old cupboards or bench tops.

For timeless appeal, use a white or neutral palette and layer with quality fittings and fixtures that complement the rest of your home.

 

The final word

Remember that property improvement shouldn’t cost you more than the value you’re hoping it will add.

It also helps to think of some of the above ideas as adding to your investment – not an expense.

If you’re still unsure where to start please don’t hesitate to get in touch with us  to assist you.

 

To find out whether you can afford to take out a loan for renovations through your home loan or any personal loan, try our calculators.

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

 

Mortgages not holding Australian’s back from travel

It’s no secret that Australians love to travel. The thing is, we also love to own our own home. Can you do both? It turns out most people can!

There’s this myth that once you take out a home loan you’re locked down for good. Or at least for the foreseeable future.

It’s no doubt a major deterrent for young people embarking on home ownership.

But it turns out that’s simply not true: where there’s a will, there’s a way.

Research just out from InsureandGo shows most people (55%) go on at least one overseas holiday within three years of buying their home.

More interesting still, 21% of home owners travel overseas within their first year of buying a home, and 39% within two years.

Then there’s the 10% who are super keen to scratch that travel bug itch and go jet-setting within six months of buying a home.

How do they make it work?

Cheap airfares are a good start.

Get ahead of the pack and receive free email notifications when a jaw-dropping deal is going through services such as I Know the Pilot and Scott’s Cheap Flights.

They’ll send you an email alert when they’ve found a cheap airfare that matches any airports you’d like to depart from and arrive at.

Don’t forget to see Australia!

Rest assured that if the budget is tight, there’s always Australia to explore.

Don’t forget that 8.8 million people travel from all across the world to visit our beautiful country each year.

The first few years of your mortgage may serve as the perfect chance to join them in exploring our vast continent.

That’s exactly what half of all new home owners do within the first year of taking out a mortgage, according to the InsureandGo report.

You don’t have to fly across the country and fork out hundreds of dollars, either. Every state has its own beautiful coastline and national parks, many of which are situated near affordable campgrounds.

Make savings on your home loan to build up travel dollars

Becoming a house-owner these days doesn’t mean you have to become house-bound.

Sure, meeting your mortgage repayments will always come first. But it’s also important to give yourself and your family a much needed holiday every now and then.

By clever budgeting, smart savings on your home loan, good travel deals, and a dose of discipline, you don’t have to sacrifice travel for home ownership.

To find out more about budgeting with a mortgage and to ensure you have the best home loan, get in touch.    We’d love to help out.

 

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

New Year, New You!

Each year we make New Year’s resolutions that focus on our health and well being. But how often do we think about improving our finances? Here are five financial New Year’s resolutions that could help you start 2019 with a bang!

You might have missed it over the silly season, but the good news is that many economists are tipping that we won’t see the RBA announce a rate rise in 2019.

Indeed, three leading economists now believe we may even see an interest rate cut this year. (Although, as we saw in 2018, that doesn’t necessarily mean the banks will follow suit).

But instead of sitting around waiting for the RBA and the banks to make a move that could save you money, here are five New Year’s resolution ideas to help you out in 2019!

Resolution idea #1: Get a home loan health check

Whether the rates go up, down, or stay where they are, it never hurts to get a home loan health check to make sure there’s not a more suitable home loan out there for your situation.

Because while the RBA kept their rates on hold throughout 2018, not all banks did too.

In fact, every single one of the Big 4 Banks increased interest rates in 2018. To make sure you’re still happy with the rate you’re paying compared to what’s available in the market, give us a call.

Resolution idea #2: Cut back on the credit card purchases

The average card holder is paying around $700 in interest per year if their interest rate is between 15 and 20%, according to ASIC.

That $700 is nothing to sneeze at. It’s enough to purchase a new suit or outfit to help you land that new job, fund a year’s worth of home and contents insurance, or take the family on next summer’s camping trip.

Additionally, as of January 1, banks and credit providers are now required to check your debt-servicing capacity more thoroughly before issuing a credit card.

That means if you’re planning to load up on one credit card, and then transfer the debt to a card with a lower interest rate, you might find yourself out of luck.

With that in mind, the next question to ask yourself is: do I really still need a credit card if a debit card will suffice?

 

Resolution idea #3: Purchase less take-away coffees, alcohol and other items

Buying a $4 take-away coffee each day costs you a whopping $1460 per year.  Making it yourself using a Nespresso costs just $260 – a saving of $1200.

The lure of micro-transactions – purchases that are low in cost and trivial in nature – can be a real obstacle for those trying to achieve their financial goals.

Other micro-transactions that most families can cut back on include alcohol, take-away food and multiple entertainment subscriptions such as Spotify, Netflix and Foxtel.

Resolution #4: Ask your employer about salary sacrificing

Salary sacrificing – also known as salary packaging – is generally tax-effective for people who earn more than $37,000 a year.

It helps you save on tax by allowing you to forego your salary in return for non-cash benefits, including car leases, childcare, student loans or superannuation contributions.

It all depends on your employer and the industry you work in but there are three broad categories of things that can be packaged: things that attract fringe benefits tax (FBT), those which do not, and superannuation.

If you’re interested in exploring your options, make an appointment with your employer when you get back into the office this month to see if they can make it work for you!

Resolution #5: Review your insurance, superannuation and banking costs

Whether it’s your home and contents insurance, your car insurance, or a life insurance policy, by calling three or four insurance companies, getting quotes, and then comparing, you can save hundreds of dollars each year.  And don’t forget your health insurance,   you might be paying for hospital and extra’s cover that you don’t need.

While you’re at it, make sure you don’t have more than one superannuation fund. If you do, consolidate it by following these steps to avoid doubling up on fees.

Finally, look into your banking fees. Just like a home loan there’s often a better deal out there, so make sure your bank isn’t taking you for a ride!

Final word: Set a financial goal

If you’re not back at work yet, then use this precious time to carefully consider what financial goals you want to achieve in 2019.

It could be saving up for a long overdue holiday, putting away more money towards your kids’ education, or buying an investment property.

If you’re stuck for ideas, come in and have a chat to us.

 

” A dream written down with a date becomes a goal.  A goal broken down into steps becomes a plan.  A plan backed by action becomes a reality “

Let’s get some reality in 2019 !

 

 

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Don’t dive into credit card debt this Christmas

Every Christmas almost half of the Australian population decides to go swimming in credit card debt to get through the festive season. But there’s two big reasons why you shouldn’t do that this year.

Bad news: new data from St George bank shows that 46% of Australians haven’t saved up for Christmas gifts and need to use their credit card at the checkout.

Worse still, 1 in 3 people say they need to rely on their credit cards to survive.

While this may have worked for some families in the past, there are two new factors this year that should make them think twice about doing so.

Factor #1: New credit card rules from January 1

As of January 1, banks and credit providers will be required to check your debt-servicing capacity more thoroughly before issuing a credit card.

Essentially, credit providers will only approve your application if they’re satisfied you can repay the card’s credit limit, at its interest rate, within three years.

If not, you’ll be denied a credit card, or offered a lower limit.

In years gone by, credit card providers have gone on advertising blitzes for interest-free credit card deals in January and February.

So families who have made it an annual tradition to take up these offers will be due for a shock – they might not be able to transfer their full debt this time around.

This will either leave them with two credit cards to pay off, or worse still, one big debt already accruing interest.

Factor #2: It will be harder to get a home loan

It’s getting harder and harder to obtain a home loan due to the banking royal commission lending crackdown.

Lenders are required to ensure that the loan is not unsuitable for you,  so you need to get your spending under control before having finance approved.

They’re not just checking the last month or so, either.  Lenders will trawl through your accounts for the past several months for any spending anomalies.

If a lender sees that you’ve thrown caution to the wind with your credit card over Christmas you might just be put on their naughty list and denied finance.

Essentially, that could hamper your chances of obtaining finance for a home loan until about April next year.

How we can help

It’s believed that the stricter rules on credit cards will have a knock-on effect on applications for all types of credit, according to some experts.

So if you’ve got expensive debt on your credit cards or personal loans,  we would like help consolidating it into your home loan.

And if you’re not quite in credit card debt just yet, but the forecast isn’t looking so great, then get in touch.

We have plenty of great budgeting techniques we’d love to share with you to help ensure you have both a Merry Christmas – and a happy, credit card debt-free New Year!

 

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Rentvesting: have your cake and eat it too

Most Australians grow up with the dream of buying and living in their own home. But, given the difficulty of cracking into the market in trendy locations, another option has emerged.

So what is rentvesting?

Put simply, rentvesting is the increasingly popular practice of buying an investment property while continuing to rent.

The logic surrounding the idea is that rentvesters will be able to rent out the investment property to generate an income stream that covers their rental payments.

The property can then be sold at a later date for capital gains.

Rentvesters tend to buy investment properties in affordable areas while renting a property somewhere more affluent.

This allows them to live in their desired location whilst building an investment portfolio that will eventually provide them with the means to purchase a property there.

Who it might suit

Rentvesting may be most suitable for young professionals who want to live an aspirational lifestyle in the present without endangering their chances of getting on the property ladder later on down the line, and who are willing to wait a while to call their home their own.

That said, rentvesting is not for everyone. Particularly not for those who see renting as a waste of money when they’d rather be channelling their earnings into something that is fully theirs.

The pros

Rentvesting gives people the opportunity to get on the property market sooner than they might otherwise have. That’s because a smaller deposit is needed to purchase a property in more affordable areas.

It also allows people to live the lifestyle they want without having to worry about taking on a huge mortgage, as well as giving them an opportunity to build wealth and reap the tax benefits of investing.

The cons

The primary concerns many people have with rentvesting involve the fact that it requires pushing lots of money into rental payments.

There are also no guarantees that rentvesting will pay off, and it may seem counter-intuitive to buy an investment property before your own home.

In this way, rentvesting is not necessarily suited to those with emotional attachments to properties.

Is rentvesting right for you?

If you’d like to explore if rentvesting suits your individual circumstances, come and visit us to find out more.

We’d be happy to help you look at the various ways you can crack the property market.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Parents as guarantors: end your child’s first home mirage

They grow up so fast. One minute they’re nagging you for a dollhouse, the next, it’s for help buying a two bedroom unit in an up-and-coming suburb. If you always find it hard to say ‘no’ to your kids, here’s how to say ‘yes’ the right way.

You’ve probably heard your children complain about how hard it is to crack into today’s property market.

And smashed-avocado shenanigans aside, they do have a point. It is tougher nowadays.

With the property market constantly on the up-and-up, reaching that 10% to 20% deposit can feel like a mirage for your child.

The good news is that you can help them obtain that slightly out-of-reach home loan by using the equity in your property.

How it works

Banks find it risky to lend to borrowers who have an unstable job or low deposit. But they do allow seemingly more-reliable immediate family members to guarantee a home loan.

Guarantor loans have huge benefits for your children, including:

No deposit required: If guaranteed against a parent’s property equity, your child may be entitled to borrow 100% to 110% of the purchase price of a property. That means little or no deposit is required. Instead, your child can focus their savings on white goods and repayments.

No Lenders Mortgage Insurance (LMI): Your child will likely not need to get LMI because the equity is usually enough of a guarantee to protect the lender against losses.

Things parents should keep in mind

Sounds great, right? But it’s not entirely without its risks. Here’s what you as a parent need to keep in mind:

Safeguard your credit report: Be sure that you can honour the repayments in case things go awry and your child is unable to pay. You should be positive that they will uphold their end of the bargain, but also prepare for the unexpected.

Financial risk versus emotional benefits: Going guarantor makes you financially responsible if your child defaults on payments. The emotional benefits, however, can outweigh the risk.

Impacts on your borrowing capacity: Future credit providers will take into account the guaranteed loan. They will assess your borrowing capacity based on it, and whether or not you are an active participator in the repayments of your child’s mortgage.

How we can help

We understand that when it comes to your children, it can be near-impossible to take your emotions out of decision making. That’s where we come in.

We can help you calculate whether or not you have the equity to make this work, and assess your child’s financial capabilities to see if they’re in a position to be making repayments.

We’ll also help you understand your legal liability as a guarantor before helping you make the big decision.    So give us a call today on 1300 360 999.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

 

Location is crucial when buying investment property

The first thing most of us look at when selecting an investment property is its location. If the property itself isn’t quite right, you can always renovate, but it’s not as easy to move a house to a better location. That’s why you should consider the location carefully. Here are some of the most important things to look for.

Love thy neighbour

Before you buy, familiarise yourself with the local community. If possible, visit the neighbourhood during both day and night to get a feel for whether it’s a safe place to live. Are there kids playing outside or security bars on the windows? Are there trampolines in the front yards or the remnants of last night’s party? This will help you determine whether the location is suitable for the type of tenants you want. After all, if you’re looking in an area that attracts university students but you would prefer to rent to a quiet couple, then perhaps this location isn’t right for you.

Future plans

The neighbourhood might look suitable now, but things can change. It’s a good idea to investigate any future plans that could affect the value of your property. For example, the local council should be able to tell you if a freeway or large-scale construction is planned. Major works could increase or decrease your property’s value depending on where they’re situated.

Access to infrastructure

To increase your potential rental income, try to buy near desirable infrastructure and facilities. For example, families often pay a premium to live in the catchment area of a quality public school, so it’s worth checking the educational zoning.

Access to shops, public transport and the beach are also attractive features for both tenants and prospective future buyers. And while it’s handy to be near the airport, if you’re located right under the flight path it might impact the amount of rental income you receive.

Bargain pockets

Finding a bargain pocket in a good suburb could increase your capital growth potential. By looking at demographic data, such as that collected during the Census, you may be able to spot trends. Perhaps the neighbourhood has recently been gentrified by young professional couples who are increasing the average income of the area, which is likely to increase the value of the property over time. Bargain pockets may also be found in close proximity to high-growth areas that will benefit your investment in the long term.

By considering the location, not just the address, you can increase your chance of maximising your rental and capital growth potential.   Searching for an investment property can be a rewarding experience however if you really want to maximise your investment opportunity you should engage a Buyers Agent who are specialists.   At MortgageDirect we work closely with Buyers Agents and can recommend someone for your specific needs.