7 Tips For Buying A Winning Investment Property In Brisbane

It's no secret that the Brisbane property market is booming right now. In fact, Brisbane property prices have increased by 23.7 per cent over the last 12 months. That's an incredible return on investment!

If you've been thinking about purchasing an investment property but don't know where to start (or how to beat the heavy competition), we've put together 7 tips to help you find that winning property.

1. Set Clear Investment Goals

Before you start pulling up real estate listings and scheduling visits to every suburb in greater Brisbane, you need to take a step back and think about your investment goals.

Why do you want to purchase an investment property? Is wealth creation your ultimate goal? Are you playing the long game and only interested in capital growth? Do you want to rent it out so you can earn some passive income and save for retirement? If so, how much do you want to bring in per month from your tenants?

By setting clear goals right from the start, it'll be easier to narrow down your options when you start searching for properties. You'll be able to avoid investing in places that won't help you achieve your goals in a timely manner.

2. Set & Stick To A Budget

Next, figure out a budget for your investment property. You need to figure out how much you can afford to spend so you don't fall in love with a property that's way outside of your price range.

Have you talked to a lender about how much they're willing to loan you to purchase a property? If you haven't already done so, now is a good time to do that.

Keep in mind, too, that you'll need to meet certain criteria before you can get approved for a loan, including the following:

Deposit: At least 20 per cent of the property value (unless you have a guarantor or are okay paying Lender's Mortgage Insurance)

Extensive savings: Most lenders want to see a certain amount of cash in your bank account, consistently, for at least 3 months

Clean credit history: A high credit score and clean credit history are both essential

A strong income and employment history matter as well. Lenders will also want to see that you are employed and have a stable, consistent income.

3. Factor in Hidden Costs

When you're figuring out the budget for your investment property, be sure to factor in other, less obvious costs associated with buying real estate. These include:

Inspection fees

Land survey fees

Conveyance

Application fees

Title search fees

Broker fees

Valuation costs

Settlement costs

Insurance costs

If you don't factor these expenses into your budget, you're going to be hit with some unpleasant surprises along the way.

4. Choose the Right Location

Once you know what you can afford to spend, you can start looking more seriously at potential rental properties. If you want to see solid growth from your investment after purchasing an investment property, you need to pick the right location.

A good option for those wanting to buy investment properties in the Brisbane property market is to look at the suburbs near the city, such as Toowong, New Farm, Paddington, and St Lucia. These are all attractive locations to renters because they're close to the University of Queensland, shopping centres, motorways, and more. These areas also typically have a lower vacancy rate than other suburbs.

Some other areas in the Brisbane market we recommend checking out are Cannon Hill in East Brisbane, Highgate Hill in South Brisbane and Everton Park to the north. House prices are quickly rising in these areas so make sure to jump in soon.

5. Choose the Right Property Type

Along with choosing the right location for your investment property, if you’re chasing optimal price growth, you also need to choose the right property type.

Most property investment experts agree it is best to choose properties like detached houses, townhouses, and large apartments. These are all properties that are highly versatile and will likely appeal to many different types of renters.

Remember, even if it seems like a great investment opportunity, be wary of properties that require extensive repairs.

With housing prices rising quickly through South East Queensland, you don't want to have to spend even more money to fix up a property before you can rent it out. A few updates are fine, but be cautious about buying a property that will take months to get rental-ready.

6. Work with a Property Buyer's Agency

If you want to make the process a lot easier, partner with a buyer's agency like Hot Property. A skilled buyer's agent will listen to your goals and work with you to find a property that helps you achieve them.

They have extensive knowledge of the different property types available throughout Brisbane and will make it easy for your to narrow down your options and select the best one. They also handle tasks like price negotiating, so your buying process can be as simple and stress-free as possible.

Plus... you get your weekends back!

7. Partner with Other Professionals

In addition to an experienced buyers agent, you'll also need some other professionals on your team to help you find, purchase, and earn extra income from a great Brisbane investment property.

The following are some of the most important experts a property investor should partner with:

Real estate lawyer: They can help you avoid potential legal challenges and understand the legal ramifications of buying and renting out an investment property

Property advisory professional: They can help you decide where and what to invest in.

Financial planner: They can help you develop a detailed plan to reach your unique investment goals

If you want to rent out a property to earn extra income but don't want to be a landlord, working with a property management company is also a good idea.

A property manager will do all the heavy lifting for you (collecting rent, handling maintenance needs, etc.) in exchange for a percentage of the rental income.

Find Your Perfect Investment Property in Brisbane Today

If you've been feeling daunted by the idea of buying an investment property, working with a reputable buyer's agency can make a big difference.

Here at Hot Property Buyer's Agency, we are an award-winning team of buyer's agents.

As the top buyer's agency in Brisbane, we have specialised knowledge of the local property market, and we can't wait to help you find the perfect property.

We provide a full wealth of services including renovation advisory and property management in addition to finding and securing you the perfect property.

Contact us today to get started!