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Guide to Investing

From the outset it is important that we say that at Indigo Real Estate we are not financial advisors and would strongly encourage you to get the appropriate professional advice before buying an investment property. What we aim to provide here is an introductory guide for your consideration when deciding if an investment property is the right decision for you.

  1. 1. Know the local market, the vacancy rate, the areas and what rental you can expect to receive.
  2. 2. Research what capital growth may be possible.
  3. 3. Determine how much you can invest – speak to your bank manager or financial adviser.
  4. 4. Research what type of properties prospective tenants are looking for
  5. 5. Have knowledge of where interest rates may be going, up or down!
  6. 6. Is the property likely to be cash flow positive or negative for you, and does that work with your current personal financial situation?
  7. 7. Understand your outgoings, including property maintenance, management fees and any additional capital costs.
  8. 8. Understand the tax implications and obligations of a rental property
  9. 9. Understand the benefits of depreciation and what properties it may apply to.
  10. 10. Understand your obligations as a landlord
  11. 11. How long do you intend to hold the property for?
  12. 12. Know the right time to buy, both personally and for the market
  13. 13. Investigate the strength of the local economy