How to get the biggest ROI on an investment property


When you purchase an investment property, you want to increase the potential return as much as possible.  Location, location, location may be the first thought that comes to mind. However, there are a few aspects that could increase or reduce your return that you should consider.


To get the most out of your investment, you need to think about if the property will be attractive to tenants. Some factors to consider are schools, transport, employment and entertainment of the area you are looking to purchase. A great place to start is to settle on a couple of locations and research the vacancy rates and rental yields of similar properties within the areas.

Quality matters

A misconception of purchasing an investment property is to not worry about the quality because you don’t have to live in it. Although, while you may not live in it, somebody else has to. Additionally, if and when you choose to sell, keep in mind that the property will be open to both homeowners and investors, and a home of low quality generally won’t sell as well.

What do tenants want?

Another factor to take into account is the demographic of tenants likely to be living in the neighbourhood. For example, a high quality, one bedroom unit located in the city could be an excellent investment. However, if it were placed 30km outside of the city, it may not have the same amount of interest.

Does your ‘cash flow’?

A common mistake Australians make is not having an understanding of their cash flow, which could be worse than paying too much for a property. You should be aware of how much the property will cost you after tax. A top quality house isn’t worth it if it is going to send you broke.

When purchasing an investment property make sure you reach out to experts who know the market. A finance broker will be able to aid you in connecting with a trusted professional who can help you buy a property that suits you. Looking at an investment property isn’t something you have to do alone, feel free to get in contact with us. We’re here to help.