Investing in a Rental Property
Investing in a rental property is likely to be one of the biggest decisions you’ll make in your life – right up there with purchasing your first home. While a getting a rental property is a huge investment, it can also provide a great additional income for you and your family – but only when done correctly.
Unfortunately, not everyone is fit to handle the process of buying and renting out a property – so if you don’t have confidence in doing it, don’t start the process! Investing a lot of money into a property without knowing much about it can end up costing you lots of money in the long run.
For those who want to invest in a rental property but need some assistance, this guide is for you! In this Investment Property Guide, we talk about the basics that you need to know to go about the process. Also, there is the additional option of hiring a local property consultant for professional advice and guidance on purchasing your first rental property.
DIY or hire a professional
This is the first thing you should think about when discussing the possibility of getting an investment rental property. Do you have the time, effort and commitment to attend to every and any issue that arises with buying a investment property? Do you stress out or get overwhelmed quite easily? If this sounds like you, your best bet would be to hire the services of a professional property consultant. Not only can they help you address any issues and errors that may arise, but they can give you the best advice as to which Melbourne properties are worth investing in.
If you think you can tackle the project alone – perhaps with the help of a partner and/or other family members – then good for you, and good luck! With the help of this guide, you can ensure that you do everything you can to make it as stress free as possible for everyone involved.
budgeting for a new rental
Obviously, you’ll need to have some sort of savings – or perhaps you’ll need to get out a loan – to invest in a new property. But believe it or not, this is far from the only cost involved with getting a rental property.
Depending on what state and condition your rental property is in, you may have to invest quite a bit of money in house fixes and repairs.
Before you purchase any property, be sure to invest in a pre purchase property inspection – this will help inform you of everything you need to know about the house prior to investing your money in it. Issues such as leaks and water damage can be found with this inspection.
Once you have the inspection, you can determine the other costs involved with getting your rental. You may need to re-roof the house – in which case you’ll need to purchase roof supplies, roofing contractors and a skip bin for the rubbish. It only takes one minor issue to end up costing you a fortune!