Are you wanting to buy your first investment property this year? Or maybe, you’re looking to grow your portfolio. Whatever your 2021 plan is, here are BMT’s tips to finding the perfect investment property. 

1. Research, research and more research

Successful investors do the research before they start narrowing down their property pool. They look at everything from price ranges and property types, to market trends and location characteristics such as demographics and employment rates. 

Doing the research early will help you in the long-run and make your search more strategic. 

2. Use the tools that are available

You have ample tools at your disposal to find the perfect investment property. The trick to using these effectively is identifying the ones that are reliable and backed with comprehensive data. 

PropCalc is a good example. This free tool is the essential cash flow calculator for anyone looking to buy a property. It shows you exactly how the purchase will affect your cash flow, produces comprehensive property reports and analyses key suburbs data. 

3. Search with the tenant in mind

What type of tenant are you looking for? This is an important question to ask at the very beginning as this will inform the type of investment property you will be searching for. 

Your real estate agent will be able to provide information on what tenants in the area are looking for. This can help you narrow down your property pool, ascertain how successful your first-choice property will be in the area and make any search adjustment where necessary.  

4. Know your long-term plan

What’s your game plan? Property is a long-term investment so you can’t expect a return overnight. 

Your plan needs to be centred around your overarching investment strategy, as this ultimately determines the property you buy. For example, your strategy could hold a range of objectives including portfolio diversification for risk minimisation, favouring long-term gain over short-term rental yield or visa-versa. 

Changes go hand-in-hand with long periods of time – this means your property journey mightn’t always be linear. Therefore, it’s essential to have an agile plan in place that allows for the unexpected. 

5. Consult with a depreciation specialist 

Claiming a tax deduction without making an expense sounds like a pretty good deal, right? Well, it’s possible with property depreciation. 

Depreciation is the natural wear and tear of a property and its assets over time. As one of the highest deductions out there, depreciation can boost your cash flow by thousands in just one year. This isn’t a one-off deduction either, as you can claim depreciation for up to forty years on a residential property. 

BMT Tax Depreciation has prepared over 700,000 tax depreciation schedules over the past twenty years. The expert team can provide obligation-free depreciation estimates for all types of investment properties, so you know how much you can expect to claim before making the purchase. 

To learn more about BMT and the services they offer, Request a Quote or call the team on 1300 728 726.

The views expressed in this article are an opinion only and readers should rely on their independent advice in relation to such matters. 

This is a sponsored feature article. 

Read more from BMT Tax Depreciation: 

BMT’s top 6 residential property depreciation facts

What are the pros and cons of buying a second-hand investment property?

BMT shares the top three depreciation mistakes