Our 10 top tips when buying property for investment
1. Buy directly from a developer: No transfer duty as VAT is included in the sale and the property could qualify for tax allowances (sec 13) when a property is new and unused.
2. Buy in security complex/estate as security is one of the most important requirements for tenants.
3. Buy in developments with a healthy percentage of owner-occupiers vis-a-vis investors.
4. Buy close to good schools: These areas tend to be more sustainable in down markets - as children grow into school-going-age, there is a demographic move towards school catchment areas that is unrelated to the state of the housing market.
5. Buy close to town or city centres: Tenants prefer living close to schools, work, shopping centres and hospitals - especially in a down market when saving on travelling costs is important.
6. Ground floor units (with a small garden) appeal to a bigger rental market than upper floor units.
7. Look for a less expensive unit in the most upmarket and best-located development you can afford - better potential for good capital appreciation.
8. Do your homework as far as actual rentals achieved in the area as well as levies payable.
9. Beware of initial attractive rental guarantees and high rental return offered by developers - these rentals may not be achievable when the guarantee period runs out.
10. Do your calculations and ensure that you are aware of all costs when buying the property - conveyancing fees, bond costs, costs of blinds/curtain rails, landscaping costs; and remember levies, rates and taxes are continuous costs throughout the ownership period.
We trust our advice helps you plan your next investment thoroughly.