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January

Melbourne Investment Property

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For many first-time investors, Melbourne property investing can be a daunting proposition. Questions such as where to buy, how much to borrow, how much rent to charge as well as other complicated legal, financial and taxation issues (Melbourne Investment Property) can become intimidating and overwhelming.

Property experts recommend that the first step on your prospective investment journey is always to ‘research, research, research’. This means sitting down and thinking about the type of property you are interested in investing in and investigating where the growth areas are. Remember that this could be around the corner from where you live now or interstate. Popular types of research include examining magazine real estate articles and the business and real estate pages in your local and daily newspapers, talking to local real estate agents, other experienced investors or financial advisors, and/or investigating property investment sites such as propertyinvestor.com.au which can provide a range of valuable educational tools, resources and solutions to help you source the right property for your investment needs.

As a property investor you are seeking to make a profit on any Melbourne property you buy in several ways – through projected rental return on your property, by how much capital growth your property builds over time and tax break opportunities, such as depreciation and negative gearing, which may be used to lessen your annual tax liability.
As well as research on the type of property you are after and in which location you are best placed to profit, more research is necessary to find out what median house prices are in that particular area and historically, what type of growth they have achieved over time.

Think about how this would impact on your potential investment and consider whether the capital growth rate and the type of rental returns being achieved by similar properties in the area fits your investment strategy. Also examine future government infrastructure and proposed urban planning projects in the area ie. new schools, public transport, commercial investment etc. Take into account how these developments could impact on capital growth forecasts for the type of property you are considering investing in. Also ascertain if there are any tax advantages for investing in this type of property in the form of depreciation etc.

By conducting methodical research, meticulously analyzing the information on offer and seeking prudent advice from industry professionals you move one step closer to buying the right Melbourne property for you and giving your investment strategy the best chance of success.