Investment properties by dwelling types - what to know
One of the key aspects of becoming a property investor is deciding the type of property that is suited to help you achieve your personal goals. And the good news is that investors are spoilt for choice. There is a whole spectrum of properties beyond houses and apartments.
The idea of living in a brand new home can hold plenty of appeal for tenants, and for investors a new property can mean saving on repair bills and enjoying generous tax breaks through depreciation. With options to choose between buying or building a new place, or even buying off the plan, it’s all about deciding what’s right for you.
Investing in an established property can have pluses too. It can mean buying in an area where rent returns and local tenant demand are clearer. Facilities such as schools, transport links and employment hubs, which tend to be sought after by tenants, may also be more available.
You may be considering investing in a holiday home with the potential to enjoy downtime in a location you love while making the property pay its way through short term accommodation. It’s a strategy that can work, just be sure to crunch the numbers to be confident that it suits your cash flow.
As an investor, it can pay to think outside the square. The commercial property market offers opportunities to invest in office or retail space, plus warehouses and industrial complexes. Commercial property can have advantages over residential property – the leases for instance, tend to be far longer. However, commercial property is regarded as higher risk, so do plenty of research before taking the plunge into the market.
Niche markets are also available such as aged care or housing for defence force personnel. Both can be successful investments but these types of housing appeal to a limited range of tenants, and here too it is important to be sure the investment will help you achieve your unique goals.
No matter which type of property you’re interested in, we can explain the finance options available to make your investment a reality.
In this chapter
Take the next step to buying your first home.
Buying a new, rather than established property, can benefit investors in several ways. First, there may be depreciation ...
There can’t be too many of us who haven’t dreamed of owning a holiday home, and with some careful planning...
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