Real estate investing can be very profitable if you’re strategic about where, when, and how you invest your money. Your investment property can make your money back and more by either the property appreciating or by you renting the property to cover your mortgage.
As Toowoomba’s leading real estate agency and property management firm, The Real Estate People put together this list to help you maximise your real estate investment for the ultimate return.
Choose the Right Location
Your local real estate market plays a big role in how much you can rent your property. When the real estate marketing is booming, there will be greater demand for your property, so you’ll be able to increase the price. Factors like property prices, rental rates, economic growth, the labour market, population growth, and tourism all impact the desirability of an area.
Consider Maintenance Costs and Your Market
You may think that investing in a huge, expensive house will result in greater return, but it’s generally the opposite. Think about your market. Are most people really looking to rent an 8-bedroom house for $6,000 a month? You’re going to find a lot more potential renters looking for affordable, single-family homes.
Single-family homes appeal to a wider market, so you can increase your occupancy rate. Furthermore, single-family homes are cheaper to renovate and easier to maintain. You’ll make more money with less money down.
Perform a Rental Analysis
Performing a rental analysis will give you the most accurate picture of what you will invest and what return you will yield. Take a look at comparable properties in your area to see what they are renting for. When you’ve narrowed your search to a few properties, make a comprehensive list of how much money you would need for each and how much money you could make at maximum and minimum occupancy. This will help you decide what’s most worth your time and money.
Use a Qualified Agent
Don’t try to embark on your real estate investing journey alone. Using an agent who knows your local area and real estate trends will give you a more accurate understanding of the best properties to invest in.
If you’re looking in the Toowoomba area, The Real Estate People are great agents to help you find a property to maximise your return. Get in touch with us on 07 4633 8899 to start your search.