About 1.86 million people in Australia own another property aside from the one they live in, according to 2017-2018 statistics. It turns out many individuals buy properties, not just for residential purposes. They invest money to make a property an income-generating asset, for example, a vacation house that they can rent out to tourists. This way, investors get to earn back the money they spent for the capital and at the same time, enjoy an additional source of income for their family.
Purchasing a second property, however, requires a lot of mental, emotional, and financial preparedness. You need to ensure that you have enough knowledge and resources. You can take a look at the house and land packages in Melbourne’s western suburbs. You can also scout for rental property or vacant land offers in Sydney and other parts of Australia.
However, you need to make necessary considerations, such as your cash flow, your ability to pay for another property, and your eligibility for a loan. Before you invest your money, make sure that is a practical choice for you. Specify your goals about making the purchase. What will you do afterwards? Will your family reside in it or will you transform it into a vacation home? Will you turn it into a rental property so that you can generate more income? You need to be firm about the purpose of your new property. You also need to consider the following factors first.
Location
Consider the location of the property before making a purchase. Keep in mind that you can never move the property. That’s why you need to check the surroundings. Is it accessible? How about the community? Is there a beautiful view if you look out the windows? Ensure that you consider all these things.
Cost
Can you really afford to purchase a second property? Take note that any real estate investment can cost you a lot of money. You need to come up with an estimated cost for the property. Then, find out if you can finance it. Remember that you need to pay for downpayment, mortgage, equity, and more.
Potential for Rental Income
You can cut down costs by having the property rented out. You can have other people rent your property for short-term stays, especially for vacations. So, make sure that the property you choose to buy has a potential rental income. You can speak with your real estate agent for this process.
Make sure that you do a lot of research first before deciding which property to purchase. Don’t forget to consult and talk to the right experts. They can help you weigh all the pros and cons when it comes to choosing your second property. They can also assist in finding ways to finance your purchase. Keep doing your homework by reading and researching about property investment. Find out the economic status and costs of properties in your area. This will help you minimise costs and get the most out of your invested money.