Investment properties Perth
offer a great way to diversify your investment portfolio. However finding the right one is no small matter and overlooking certain faults and flaws can end up costing you a huge amount. The safest way to avoid a costly mistake is to engage a reputable buyers’ agent, all the while keeping your wits around you.
There are certain investment properties Perth based buyers should avoid and this certainly includes those that are not likely to generate a good return or those that are unsuitable to the buyers’ risk profile. Home makeover shows are constantly trying to persuade us that if we can only put in a bit of time and effort, our Perth investment properties will turn over a huge profit. These shows may make for addictive viewing as we all love a happy ending, but in reality this is rarely as easy as it looks. The cost of the works carried out in these shows is rarely factored in. The expense of labor alone often makes these projects unprofitable and unless you are a professionally trained builder it is a very bad idea to attempt any major work yourself.
When you take on a property, you take on any structural problems, bad wiring or plumping too. You often can’t see these issues as they are hidden away in the roof or under the floor. It takes a trained professional to spot these. The expense of hiring a buyers’ agent is nothing compared to the massive cost of repairing a large fault in your property. Even though a sales agent may tell you the property is a good investment, you need to remember that it is their job and they are legally obliged to act within the best interests of the seller. You need someone who is on your side and has only your interests in mind.
If you do decide to buy an old property it would be a good idea to have the property thoroughly checked by someone who is qualified to do so.
It is important to thoroughly research and conduct inspections of all properties including units. Your building inspector may not have access to every part of the building complex and miss something important. Demand to see a copy of the building’s strata reports and minutes for the last ten years to ensure nothing is being hidden from you. There is no need to avoid units altogether though, just exercise extra caution as you are dependent on others and don’t have full control over every aspect of the building. If you can, try and meet the neighbors. They can hopefully let you know of any significant issues and you can also get a feel of what it will be like to own a property alongside them.
It’s becoming fashionable in Perth and elsewhere to refurbish industrial properties to be used as homes or office space. These are not always wise properties to invest in however. Although they look trendy and are often refurbished to a high standard, there could be large structural issues and zoning issues which govern specific use of that property that could cause headaches in the future. Also, as the property was built for an industrial purpose, you will often be faced with future blocks including issues with floor-space and layout when it comes to using it as a home or office. Replacing things like large windows and old-fashioned roofing can also be costly.
It may be tempting when considering properties in the Perth area to invest in a holiday home or serviced apartment for business-people. After-all there will always be holiday-makers and working professionals coming over for short to mid-term stays right? Actually these types of properties come with risks that aren’t faced by residential lets. You are always reliant on finding short-stay tenants and may find yourself dealing with high costs and long periods during which your property is empty and not making any money. Opting for residential lettings can be a better option as there is likely to be a better demand and stable rent rates.
Perth’s population boom makes property investment a sound financial move at the moment. If you are thinking of making the move into property investment, you should seriously think about using a buyer’s agent who will share their wisdom and experience with you. When it comes to a sound investment, play it safe. Opt for a property in a desirable area and which is in a good condition, to ensure steady rents coming in for years to come.