Author: If you’re searching for an investment property but don’t have the financial capability to invest in the area you want, it’s time to broaden your search criteria.
Investors will often find themselves faced with the problem of wanting to invest in an area with high growth rates, but realise they are limited by their finances.
Open your mind to other investment options
While there are still opportunities to buy affordable investment properties in areas with good prospects for capital growth, you shouldn’t overlook buying an investment property in areas that experience growth rates closer to the average.
Often this means looking in suburbs further away from the city centre.
Remember, investing in property is different to buying a home to live in. You’re not searching for your dream home in your dream area, you’re searching for a property that will help you prosper.
Low interest rates help investors
With investment patterns changing, low interest rates are enabling people to borrow funds to buy investment properties that achieve yields, or rents almost equal to the cost of servicing the loan.
This means you could potentially purchase a recently constructed home in a middle-ranking suburb where the rent virtually matches the loan repayments.
While the value of these kinds of properties doesn’t increase at the same rate as properties in other areas, they will put you on a comfortable path towards owning the property without crippling yourself financially.
In other words it pays itself off.
In comparison, purchasing a similar property in a more expensive suburb would be much more difficult to acquire and would eat up a lot of your own weekly income.
If you’re considering investing, take the time to speak to a Rodi agent about what areas are best suited to you.