Environmental risks of the area can include floods and bushfires. High-risk areas can affect the bank's ability to finance the project, the overall build cost and the insurance premium paid.
Site slope and elevation can majorly affect the property's design, construction and livability once built. So it is essential to identify any challenges during the site inspection.
When buying land to build an investment property, another thing to consider is the presence of the trees on the lot, and their potential risks and maintenance requirements.
Choosing the block with the right orientation enables you to design a house that will not only be more comfortable to live in but more energy efficient.
The block should accommodate the lifestyle of the tenant moving in. Research the suburb so you can pick a suitable block to build a house that will be desired by the majority of the local population.
This contract has a list of build inclusions, so it helps avoid unexpected expenses when building and disappointments upon completion.
The noise and congestion from the local traffic or amenity might deter some tenants or buyers in the future.
As part of the new video series, Edward talks about the pros and cons of building an investment property. The first advantage would be the stamp duty savings, as you're only paying stamp duty on the land, not the house you build.
The second advantage of building an investment property are tax benefits. As an owner of new investment property, you are able to claim two types of deductions.
Most residential building work done in Queensland valued at over $3,300 (including labour and materials) must have home warranty insurance giving you an added layer of protection.
With a new build, you have the chance to design and build the type of property that the rental and owner-occupier market is looking for.
New build, appliances, fixtures and inclusions mean fewer outgoings and disruption to the tenant and more secure cash flow for the owner.
The current land supply shortage in major cities is proving hard for investors to source registered land to build on. So you might be looking into suburbs you are unfamiliar with, which can be risky.
Be mindful not to overcapitalise on your build by choosing upgraded fixtures, inclusions and/or appliances, as that could negatively affect your rental yield.
If you’re building for the first time, you might not have the experience or the time to manage the project effectively, which is when mistakes can happen.
As part of the 2nd FFF video series, I will be talking about what makes an 'investment grade' property and what features to look out for in your search! The first and probably most important thing to look out for is the right location.
As owner-occupiers are the biggest percentage of buyers in the housing market, they create much of the demand and therefore drive capital growth.
Research well and be informed about the actual value of the property to avoid overpaying. Especially in the current market where owner-occupiers are buying emotionally and driving the prices up.
Having something unique about the property will not only make it more appealing to the tenants but also attract more buyers when you're ready to divest.
Having a safe and friendly neighbourhood, and secure home, will affect what type of tenants you attract, and in the end the resale value of your investment.
Is there room for improvement through renovations or upgrades to add value to the property and make it more desirable? This will give you a chance to improve the resale value of the property so you're not only relying on the market for capital growth.
When you're investing in property it's important to enjoy the journey, not just the destination. Take care of your mind, body and soul in the process! In this video, Edward takes time out enjoying his favourite hobby at Barnbougle Golf Course in Tasmania.
The biggest fear for first-time property investors is not being able to secure a tenant and prolonged vacancy. Edward gives his tips to help you manage those fears.
Some people are reluctant about property investment as they're worried about failing. Here, Edward talks about how to overcome the fear of failure when investing in property.
If you don't have a deposit to invest in property, there are other ways to get started. In this video, Edward presents two alternative options to get a loan for your investment property.
If you don't have a big enough cash buffer to invest in property, there are things you must consider. In this video, Edward talks about some options and how to invest safely so you can plan for the unexpected.
As most investors work full-time, time is of the essence, so the opportunity cost mostly involves family time. Here is a possible solution that could work around your family and lifestyle.
It’s natural when investing to have a fear of buying the wrong property. In this video, Edward talks about what to look out for to avoid a costly mistake that could take you years to recover from.
When starting your property investment journey, it is important to have your partner's support. In this video, Edward talks about how to make them part of the process so you can set yourself up for success.
Lack of knowledge and experience might be stopping you from investing in property. In this video, Edward recommends ways to overcome this fear so you can get started.
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