Questions to Ask Before Buying an Investment Property
Questions to Ask Before Buying an Investment Property
Hey there! At JKL Real Estate, we understand that buying an investment property is a big decision. It’s exciting, complex, and yes, a bit stressful. We’re here to help you navigate this journey with confidence. Here’s a checklist of essential questions to consider before making your investment, designed to help you make informed decisions and feel right at home.
Start with Your Why
- Why are you buying an investment property?
- What are your financial goals?
- What is your complete budget?
- Can you afford the extra expenses associated with a rental property?
Plan Your Investment
- How long do you plan to keep the property?
- What is your capital growth strategy?
- What is your cash flow strategy?
- Are you looking for a positively geared property or can you utilize the benefits of negative gearing?
- How many years of depreciation does the property have left?
Choose the Right Location
- Which area is right for you?
- How much are similar homes selling for in the area?
- How much did the seller pay for the home?
- Why are they selling?
- How long has it been on the market?
- What kind of sale is it?
- What are the local schools?
- What's the nearest hospital?
- Where are the local shops and restaurants?
- How is the neighbourhood?
Assess the Property’s Rental Potential
- What type of person would rent the home?
- What is public transport like, and how far away is it?
- Are there any major projects happening in the area?
- What is the availability of new land in the area?
- Is the property in a known flood zone?
- What is the zoning of the property?
- Is there potential for this zoning to change in the future?
- How does the council view future development?
- What are the property taxes?
Evaluate Market Conditions
- Is the neighbourhood anticipating a change?
- What is the suburb's median rental yield?
- What is the property’s rental yield?
- What percentage of the area is made up of renters?
- What is the vacancy rate in the area?
- What is the suburb's median house price?
- What are the local auction clearance rates?
- How long has the property been on the market?
- What are the average “days on the market” (DOM) in the area?
- Is any property discounting happening in the area?
- What is the population growth forecast in the area?
- What are the local demographics?
- What is the current market rent?
Inspect the Property
- How old is the property?
- What is the average age of properties in the area?
- How many car parks are there?
- Can you safely park on the street?
- What are the rules on pets?
- What are the monthly maintenance fees?
- Are there body corporate fees? How much?
- Is there a recent strata report on the property?
- Would tenants pay more rent to have air conditioning?
- What improvements would tenants pay more rent for?
- How old are any major renovations?
- Is there documentation on work done to the house?
- Is anything NOT included in the sale of the house?
- Does the property need work? If so, what work?
- Is there lead or asbestos?
- Are there wiring or plumbing issues?
- Were there any additions or major renovations?
- Is there documentation and permits for renovations?
- Are there covenants, caveats, or any regulatory issues?
- Does everything match what is on the Certificate of Title?
- Is there a development application (DA) for the property?
- How old is the roof?
- How old are the appliances and major systems?
- What’s the history of past insurance claims?
- Has the vendor got a building and/or pest report?
Understand the Sale
- Exactly what is included in the sale?
- What fixtures and fittings are part of the sale?
- Has the owner purchased it elsewhere?
- How desperate does the owner need to sell?
- How many owners has the property had?
- What price do you think the owners would accept?
- Have they had any offers so far?
- Has the property been valued by a registered valuer?
- Is the property currently under lease?
- Has anyone attempted to purchase the property and failed due to finance?
- How much will you pay in closing costs?
- Will the vendor pay or contribute to closing costs?
Welcome to the JKL Family
At JKL Real Estate, we’re here to help you feel at home in the world of real estate. Whether you're buying your first home or refinancing, our family-oriented approach ensures you have the support and expertise you need. Welcome to the JKL family, where your home buying journey is our top priority.
Experience the JKL Real Estate Difference. Welcome Home.