How to pick a high yielder
Knowing where to invest in property is hard if you’re not an expert in market conditions, and that means choosing the right investment property can be an overwhelming, confusing and emotional. But it needn’t be that way! Here’s how to pick a high yielder.
Get professional help
Buyer’s agents understand the market you’re trying to buy in and have all the relevant research to ensure you’re purchasing a property with a high yield that will give you good returns, positive cash flow and won’t leave you struggling financially. The experts at Cohen Handler can explain why the property is expected to give high returns and what those returns might look like. They can also warn you against properties that aren’t as good as they seem or may cost you more in the long run.
Do the research
Buying an investment property is completely different to buying your first home. Or any home for that matter. Ideally it will deliver an income stream, while also having prospect of selling at a decent profit. To ensure you’re purchasing a high-yield investment (one that brings in a yield of four per cent or more), you need to understand the market you’re trying to buy in. Your buyer’s agent will look at suburbs that have seen steady growth but are expected to see even more in future. Cohen Handler can also advise on vacancy rates, rental yields, median rents, and whether rents have recently risen. (If they’ve been steady for some time, they may be due for a rise.)
Pick the right property
If you’re looking to hold your investment for a few years, you need to ensure it is within your budget and likely to give you the returns you’re after. And always pick a property that suits your needs; if you’re not interested in making renovations, then pick a home that’s move-in ready. If you don’t want the hassle of finding a new tenant, then buy from another investor. The best way to know if you’re picking the right property is to have a chat with your buyer’s agent about what you’re looking for, so they can steer you in the right direction.
Don’t get emotional
Emotions won’t point you in the direction of a high-yielding property. When buying an investment, it’s imperative that you don’t get attached to a property on your hunt. Remember that you’re not planning to live in the home, it’s there to return high yields and create another income stream. Cohen Handler can help remove the emotion factor by presenting you with logical investment options that deliver strong returns.
If you want to learn more about high yeilds, contact us Cohen Handler on: 1300 420 160 or email: [email protected]