Making the decision to build your first investment property within the Pilbara can be a very exciting, yet daunting time. As a first-time investor, it’s important to approach an investment project with careful consideration and thorough planning. Building an investment property is not like building a home for you to live in, it requires a more methodical and planned out approach. If you’re about to build your first investment property, here are some factors to consider.
Spend the time conducting sufficient market and location research
Before laying the foundation of your investment property, conduct thorough market research to identify areas that have high rental demand and the potential for capital growth. The Pilbara is a booming and growing part of Australia, which means there is ample opportunity for investment. When looking into an area to build your first investment property, it’s important to consider factors relating to its location such as growth in work opportunities, infrastructure development and proximity to amenities.
Choosing the right location is key to attract quality tenants and ensure ongoing steady rental income. Research into local rental yields to estimate the potential returns on your investment and assess the potential long-term viability of your property.
Plan a realistic budget and consider financing options
It’s vital to create a realistic budget when building your first investment property, and stick to it. Take into account the cost of building, land acquisition, permits and contingency funds for unexpected expenses. Align your budget with your investment goals and financial capacity. You should explore financing options with lenders who understand and can provide advice on investment properties to assess the loam amount you qualify for and assess the potential impact on your cash flow.
Design a property that appeals to potential tenants
When designing your first investment property, you need to create it with the target market and tenants you wish you attract in mind. If you’re building within a family area, close to schools and playgrounds, your ideal tenant might be a young family. Opt for functional layouts, practical features and durable materials that are appealing to families. Focus on creating a low-maintenance property that balances aesthetics and practicality. Including ample storage, energy-efficient appliances, and modern finishes can enhance tenant appeal and potentially command higher rental income.
More Information
Here at Build Pilbara, we know the complexities that come with building an investment property, and we can work with you to build the best investment for your situation. To learn more, give us a call on 9185 1089 or submit an Online Contact Enquiry, and we will be in touch!