Are you considering buying an investment property in 2023?
The word on the street is that 2023 will be the year savvy property investors re-enter the market, with some experts saying all the right ingredients are in place to create opportunities for strategic investing. Let’s take a look.
Why now could be a good time to invest
- Property prices are coming down in many markets, while rents are on the rise. Rents surged by a record high of 10.2% in 2022, reaching a median of $555 per week.
- Vacancy rates have been at record lows, with strong competition amongst renters for available properties.
- Migration has returned and overseas students are back. In recent headlines, more than 40,000 Chinese students may return to Australia after the Chinese government stopped accrediting overseas online learning qualifications.
Tips for buying an investment property
Budget and plan ahead
With the changing interest rates and rising cost of living, it’s important to budget ahead and plan for contingencies if you’re buying an investment property. Factor in any further rate rises or unexpected expenses.
Get inspection reports
We may see more distressed and mortgagee-in-possession sales in 2023. These properties may appear to be a bargain, but could potentially come with defects.
As with any property purchase, make sure you get building and pest inspections done, so that you are aware of any issues that could arise.
Look outside your own backyard
Savvy investors understand that smart investing is all about finding the right property in the right location. And that might not necessarily be just down the road.
There may be opportunities in other markets to explore, so be sure to do plenty of research into which areas are performing well in the current climate.
Explore your finance options
With the cost of living through the roof, never before has it been so important to find an investment loan that offers value for money in 2023.
We can find you an investment loan that meets your specific needs – whether it’s flexibility you’re after (and features like an offset account), a competitive interest rate, or both.
Keep up to date with the market
In recent years we have seen major shifts in the property market. Keeping abreast of things like interest rate fluctuations, property price changes and auction activity is important if you’re planning a 2023 property purchase.
As an investor, you’ll also want to consider vacancy rates, capital growth trends, rental returns and yields (check out these suburbs with the best rental yield in 2023).
CoreLogic is a great resource to find all the latest property market news. You can also ask us for a free report for valuable insights into property prices, comparable sales and much more.
Negotiate like a pro
Once you understand the local property market, you’ll be in a better position to negotiate. For instance, if property values have fallen in the suburb you’re buying in or properties are remaining on the market for longer, vendors may be willing to discount in order to reach a sale.
And if there’s something in particular you want, don’t be afraid to ask for it. For example, if you’re buying an older property and feel that repair requests should be part of the sale agreement, negotiate for it.
Ready to get started?
Buying an investment property is a journey, and it all begins with that first step – getting in touch with us.
We’ll run through your budget and finance needs, then start the process of organising pre-approval on your finance. Get in touch today.