How to find the right location for your Warrnambool investment property
Looking to buy an investment property in Warrnambool? The market is ripe for this kind of investment. But finding the right location is crucial to the success of your investment. Here are our top tips to help you choose the right spot.
Tip #1: Ensure you understand your borrowing capacity
Before you start shopping for your investment property, it’s important to understand how much a bank is likely to lend you for the purchase. Having a clear understanding of your borrowing capacity will help you to narrow down your search. Properties in certain parts of Warrnambool can be priced $100,000 higher than seemingly similar properties in other areas around the city. You need to know what you can afford before you set your heart on a particular property.
Speak to us and we’ll run through your finances, then explain your borrowing capacity. We can also organise pre-approval on your finance, so that it’s ready to go when you do find the right investment property.
Tip #2: Decide on your investment strategy
Some investors are all about capital growth potential. Others are more interested in rental yield, which is the cash generated by your investment property as a percentage of its value, or what you paid for it.
Whether you choose to invest for capital growth or rental yield may impact the location of the investment property you should consider. It’s a good idea to discuss these strategies with your Financial Advisor or Accountant, including any tax implications.
Tip #3: Consider any infrastructure changes
Infrastructure developments can impact the capital growth potential of your investment, so it’s important that you consider these when looking at investment properties. Improvements like new roads in the surrounding areas, or to and from the area you are considering, schools and even proximity to large employment centres, like hospitals, or health facilities, or industry bases, such as factories or depots, can drive up dwelling values, because of the demand for people to live near where they work.
Tip #4: Consider the lifestyle factor
Areas that have good access to amenities (such as a bus stop) and lifestyle attractions are more likely to be popular with renters. When choosing an investment property location, consider the access to schools, shops, public transport, parks and recreational areas.
Tip #5: Investigate the different pockets in the suburb
Most cities and towns have “good” pockets and “bad” pockets. Warrnambool is no different. So it’s important to know what pocket lies where.
One way to do this is to ask a local real estate agent to explain on a map which areas are more sought after. While the whole area may benefit from capital growth, prices in a small area may rise even faster. At the end of the day, it may be worth spending a little extra to buy in a favourable pocket if possible.
Another way to do this is to look at property and suburb performance reports. We offer reports containing a wealth of information, from median market values to demographic breakdowns and more. Ask us about access to these. They make for fascinating reading!
Choosing the right location for your investment property is paramount, and we can give you the tools you need to make an informed decision.
When you are ready to buy, we can line you up with the right loan for your specific needs, taking into account your investment strategy and financial goals. Get in touch with us today to start this ball rolling!