Three tips on succeeding in your first Melbourne property investment
There's serious money to be made in property investment in Melbourne if you do it right. Look to the most recent CoreLogic RP Data Pain and Gain report for proof: 95.3 per cent of Melburnians who sold property during the first three months of this year made a profit.
Unfortunately it's not as simple as it sounds. To help ensure the success of your first investment, we've put together three short snippets of valuable advice.
Picking your Melbourne property
Selecting the right property is one of the most difficult tasks you'll face when first investing in Melbourne. Follow these basic rules when choosing:
- Use your head not your heart: pick a property based on its potential to make a profit not emotion.
- Buy at a lower price: not only will the property be more affordable, but it will also be easier to resell.
- Pick a property in an area where prices are growing and will likely grow in future.
- Always do your due diligence: building inspections and pest inspections are essential.
Remember to take your time – there's no rush to get onto the market right now. You should only buy when the right property and the right set of circumstances presents themselves.
Selecting a suburb
Selecting a suburb can be difficult, but past trends data can help to predict how certain areas will perform in future and make the decision easier. CoreLogic's Best of the Best report shows that the following areas were the fastest growing in 2016:
- Houses in neighboring suburbs Windsor and Malvern: both increased in value by over 40 per cent.
- Houses in Wonga Park: grew in value by 34.2 per cent.
- Units in Keysborough: grew by 27.7 per cent.
- Units in Carrum increased in value by 26.3 per cent.
Trends can change and past growth doesn't always mean future growth. But if you look at development and growth in the area as well as its past performance you should start to get an idea of its future.
Many first time investors underestimate the importance of their loan.
Selecting the right home loan
Many first time investors underestimate the importance of their loan – and banks may offer a standard product off the shelf. Here at Mortgage Direct we offer a more personalised approach.
Our experienced mortgage brokers will take the time to understand your financial position and what you're trying to achieve then tailor a home loan to suit you specifically.
We'll offer our professional advice at every step, from choosing your property all the way through to the day you settle your loan and beyond.
Pick up the phone and give us a call today to get started investing in Melbourne property.
