How to invest in Newcastle properties
Purchasing an investment property is one of the most popular ways to build capital in Australia.
In Newcastle NSW specifically, the property market is as competitive as it can get. But there is also an opportunity.
According to a report from The Herald, the renewal of the Newcastle CBD and the northern migration of Sydney-siders should help maintain the region’s house prices buoyant for the next three years.
According to the QBE Housing Outlook 2016-19, prices of houses will increase by an average of 4 per cent per annum to a median of $550,000 by June 2019.
It’s not a guarantee that you’ll always earn positive returns, so you need to be wise when investing.
To help you out, here is a step by step guide on buying an investment property in Newcastle.
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Do your research on property prices
Real estate investments are all about capital growth. That’s why choosing the location and knowing the right price are absolutely essential to your success as an investor.
Do your research and speak to local real estate agents. Perhaps even consider engaging the services of an experienced buyer’s agent.
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Be mindful of cash flow
A property is a long-term investment and cash-flow may become an issue at some point, which may force you to sell.
So always do the math.
- What expenses do you expect with the property – running, maintenance and capital improvements?
- Does the rental income cover the expenses?
- Do you need to put money “out of your pocket” to service the loan?
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Hire a local Newcastle property manager
Managing an investment property can be time-consuming and risky, so hiring a local real estate property manager can be a smart move, especially if you don’t live in the local area.
Having a local will give you the peace of mind of knowing that any issues will be dealt with promptly.
It also means, you can focus on your investments and your property manager can focus on managing your tenants and compliance.
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Manage your investment risks
Just like any other investment, owning properties comes with risks.
Always be cautious and never make rushed decisions that may be costly long-term.
Talk to the experts! Consult your mortgage broker, financial planner, lawyer and/or your accountant to make sure you are financially and legally prepared.
Need help in finding professionals in Newcastle for an investment property?
Tradebusters Connect offers a credible list of recommended and vetted financial advisers, accountants, bookkeepers and other professionals that can assist with your situation.
Other Useful Links:
Hunter Valley – Cessnock local directory
Accounting services in Maitland
Real Estate Agent Blue Mountains
Real Estate Agent Chatswood & Upper North Shore
Real Estate Agent Eastern Suburbs & Bondi
Real Estate Agent Hills District & Castle Hill
Real Estate Agents Castle Hill
Real Estate Agent Inner West Sydney