Brisbane is a city in Australia and the capital of Queensland. And when it comes to real estate properties here, the demand is growing tremendously. According to a 2021 article, most homes are being sold for more than the advertised price. Additionally, the inner-Brisbane houses cost less than the ones in the outer suburbs of Sydney, with a median of 1.2 million dollars. And as per a forecast, this city will see an increase in property rates due to the 2032 Olympics. So, you can purchase investment homes in Brisbane without being agitated. But in case you don’t know where to start, read the factors given below, which must be considered before investing in a property.
Determine Your Budget and Affordability
You have to determine your affordability and take into account any potential extra and hidden costs. You have to find out how much you can deposit and borrow. Additionally, you have to get an estimate of the add-on costs. Some of the expenses include insurance, maintenance fees, valuation and settlement fees, application fees, conveyance, stamp duty, inspection charges and land survey fees.
Decide the Location
If there is a real estate boom, buyers scoop up any house that opens in the market. Finally, the buyers purchase homes in the best location. Well, finding a location depends upon the criteria and needs of the buyer. For instance, you might prefer investing in a home that is close to work areas and has access to parks, schools and public transport. You must also find out if the location is good for families with senior citizens, young children and pets. For that, you can attend auctions, open houses or drive around the suburbs. Additionally, you can gain insights by talking to neighbours or people living in the suburbs.
1% Rule Matters for Investors
Every investor has an objective or financial target in renting out the house, and many try their best to follow the “one per cent rule.” Due to this rule, property owners get to know if monthly rentals exceed or approximate the monthly amortisation. For example, an investor buys a rental house for 100,000 dollars. So, after applying the rule, the investor must attain 1000 dollars per month in income. Hence, it is recommended to purchase the property that brings you at least a 1 per cent income on the cost. And to know your property return, you can utilise the advanced rental property ROI calculator. Besides, in case your property is located in an area that is swiftly improving, the values and rent will appreciate in a short period.
Condition of the House
If you are going to invest in a house that needs a little or more fixing, you must consider the time and money you require to make the house look attractive. You must contact a professional to inspect the house. If the house needs any big repairs, you must contact the contractor immediately. You must get the estimates for any major jobs by outsourced professionals so that you will get a clear idea of how much more money you require for the investments. You must also ensure that all the serious issues are fixed before allowing the tenant to move in. Safety is a prime concern; in case your tenant becomes hurt or injured, it can lead to huge losses.
First, you must decide on the type and amount of insurance. You can pay lower monthly premiums with higher deductibles if you claim for it. Then, you must find out if the area is prone to wildfires, sinkholes, floods, tornadoes and other calamities. Once you are ready, you can look for the best insurance rates, and you can consult insurance companies to get it calculated.
Purchasing investment homes in Brisbane will definitely be effortless when you consider the factors mentioned above. And, with beautiful views and modern facilities, you will undoubtedly enjoy investing in this city.