What to look for when buying an investment home in Australia?
Table of Contents
Introduction
Buying a home as an investment is more popular than ever. As YouTube channels, articles and finfluencers have popularized its financial potential, it has drawn more capital into the property market than ever before.
In reality however, drawing profit from real estate investment can often be a path littered with lots of potential road blocks. There are so many things to consider such as location, budget etc.
Let’s take a look at what you need to keep in mind when buying your first home in Australia.
Location Matters
When it comes to property, location is everything. It helps determine the value of the property and can add convenience and comfort to your day-to-day life.
This is a universal good practice when buying, no matter if it is an investment home or your very first home.
Look for properties in areas with good public transport links, close proximity to amenities such as shops, cafes and restaurants, and don’t forget about access to schools if you have children or plan on starting a family soon.
You’ll also want to factor in the distance from work (if applicable) and any other places that you visit regularly.
Super popular and established suburbs (like Googong in north Gungahalin) are stable in growth, while upcoming estates (like Whitlam) can give multifold returns, although this can be a tad riskier.
Do Your Research
Before committing to buy a property, it’s important that you do your due diligence by researching the area extensively. Look for factors such as crime rates, price trends over time, average rental prices (if you’re considering renting out the property), local infrastructure plans and more.
All of this information will help give you an understanding of what kind of investment potential the property has so that you can make an informed decision before taking the plunge into home ownership. is also important as the design or build may be outdated and may need
Know Your Budget
Buying a house is a big financial commitment so it’s important that you know how much money you can spend beforehand.
Have a clear idea of how much cash deposit you need upfront as well as any ongoing costs such as mortgage payments, insurance premiums, utilities bills etc., so that nothing takes you by surprise down the line.
You should also factor in potential future costs, such as a partial knockdown and rebuild. The current build’s status, if there is any, is a frequently overlooked aspect in our experience with reconstruction projects.
Once all these expenses have been accounted for it’s best practice to leave yourself with some wiggle room just in case something unexpected pops up along the way!
Build Quality/Materials
The cost of a house, apart from the location, matters very much on the actual build. Different construction materials can have widely varying costs.
Steel framing is more expensive compared to timber, while hip roofs can cost a bomb as compared to cheap and easy-to-maintain skillion roofs.
Cladding materials also contain a wide range of costs, as can the material used for the facade.
If the current construction also has solar, that increases its potential value, as there are several government grants for solar energy, although it can make for a higher initial cost.
Solar energy systems also make for a sustainable home, a rising phenomenon in the Australian property market.
Property Type & Size
When looking at properties make sure you consider what type of property suits your needs best – whether it’s a custom or volume build.
Do some research into different types of properties and think about how many bedrooms/bathrooms you need, size constraints and any other special requirements that may affect which type of property is right for you.
Expert Tip: Display Homes are generally the most expensive build in any suburb. That is because it is built with the highest standards in mind, and is generally well-located in the area.
Buying a Display home hence, ensures a running monthly income (from the builder), free maintenance as well as maximized future price.
Contracts and Home Inspections
Once you’ve found a property that meets your needs, it’s time to review contracts and arrange a home inspection. It is important to read all contracts carefully before signing them so that you are aware of any potential risks or liabilities associated with the purchase of the property.
A professional home inspection should also be conducted prior to buying the house. This will ensure that any necessary repairs are identified before closing the transaction. The cost of these inspections should be factored into your budget prior to making an offer on the property.
Legal Advice
It is also recommended that first-time buyers seek legal advice before purchasing a home in Australia. A lawyer or conveyancer will ensure that all documents are properly reviewed and signed off on by both parties involved in the sale, as well as provide legal advice regarding any questions or queries relating to the purchase of the property.
Conclusion
An investment home is a serious financial decision. So, it’s essential that first-time buyers do their research beforehand to ensure maximum future profits.
Buying a plot of land can be very financially rewarding as well as an exciting experience. Make sure you do a lot of research.
ABM Homes is a leader in construction in Canberra today. With all our experience we know a thing or two about how to make land buying a stress-free experience.
Not only do we provide house and land packages, but we can also help in sourcing your own plot. You can always reach out to our team of experts by sending an email or giving us a call. We’d love to help.
He is the Operations Manager at ABM Homes with diplomas in Project Management and Building and Construction. Off-duty, he’s smashing ping pong balls or hitting cricket sixes. A construction geek, he loves untangling concepts for others.
