Buying an investment property? Here’s what savvy investors look for

Buying an investment property is one of the most effective ways to grow long-term wealth, but it only works when you make smart decisions. Whether it’s your first purchase or your fifth, making informed decisions from the start is key to getting the return you’re after.

In NSW, the property market offers plenty of opportunity, but it also comes with layers of complexity and fine print. To help you navigate it confidently, here’s what to look out for before you buy your next investment property.

Why location is everything when buying an investment property

Location, location, location – you’ve heard it all before. Where you buy is just as important as what you buy. Smart investors look for properties in areas with:

• Strong rental demand: This indicates that many people are looking to rent in the area. High rental demand makes it easier to find tenants quickly and keep your property occupied, which is crucial for steady rental income. Areas with high demand are typically popular among renters due to factors such as good schools, amenities, or employment opportunities.

• Low vacancy rates mean that properties in the area don’t stay empty for long, which is a sign of a healthy rental market. If an area has few vacant properties, it suggests that there is no oversupply, reducing the risk of prolonged periods without tenants. This stability helps keep your rental income consistent and can even allow for gradual rent increases.

• Access to public transport, schools, shops and employment hubs: Convenience plays a huge role in attracting quality tenants. Properties located near public transport options, reputable schools, shopping centres, and major employment areas are in high demand. These conveniences make life easier for residents, and as an investor, you’re more likely to see your property continuously occupied by tenants seeking that lifestyle.

• Long-term capital growth potential: This is about the future value of your investment. An area with strong long-term capital growth potential is likely to experience increasing property prices over time. Factors such as planned infrastructure projects, local economic development, and overall demand help drive this growth. This potential not only benefits your future resale value but can also enhance your overall return on investment through increased equity.

If you’re buying in regional NSW, suburbs around the Hunter Valley are seeing increased interest thanks to infrastructure growth and lifestyle appeal. Do your research using recent sales data, council plans, and suburb profiles.

Know your investment strategy

Before you start browsing listings, get clear on your investment goals. Are you chasing rental income, long-term capital growth, or both?

• Rental yield is how much return you’re getting from rent each year as a percentage of the purchase price.
  
• Capital growth is how much the value of your property increases over time.

There’s no one-size-fits-all answer, and it really depends on your financial goals, your borrowing capacity, and your appetite for risk.

Tip: Work with a mortgage broker to understand your borrowing power before you begin.

Don’t skip the legal checks

When buying an investment property in NSW, the contract of sale and Section 10.7 planning certificate contain crucial information that could affect your investment.

A savvy investor will always:

• Have the contract reviewed by a conveyancer (that’s us!) before signing
  
• Check for zoning, easements, and unapproved structures
  
• Understand any strata bylaws if buying a unit or townhouse
  
• Confirm what tenancy laws will apply if the property is already leased
  

As your conveyancer, our role is to help you avoid legal surprises and make sure you understand precisely what you’re buying into.

Look beyond the surface

Even if a property looks neat and tidy, hidden issues can impact your return. Smart investors go deeper by:

• Getting a building and pest inspection
  
• Asking for recent maintenance or renovation records
  
• Considering potential renovation costs
  
• Checking energy efficiency ratings or water-saving features

All of these factors can influence how appealing your property will be to future tenants – and how much you’ll spend over time maintaining it.

Set yourself up for long-term success

Once you’ve secured your investment property, the real journey begins. Ongoing success comes down to planning, not luck.

• Work with a good property manager to find and retain quality tenants
  
• Set up landlord insurance to protect your income
  
• Keep good records for tax purposes (especially depreciation schedules)
  
• Plan for unexpected costs like repairs, vacancy periods, or interest rate changes

Savvy investors don’t just think about the purchase – they think about how to manage the property in a way that keeps stress low and returns high.

Invest in property with confidence

Buying an investment property in the Hunter Valley or anywhere across NSW is a big step, but it doesn’t have to be overwhelming. When you understand the key things to look for, ask the right questions, and get the right support, you set yourself up for success from the start.

At Oliver & Co. Conveyancing, we’ve helped thousands of buyers navigate their investment journey with confidence and clarity. If you’re ready to take the next step, we’re here to make the legal side stress-free and straightforward. But remember to reach out early because we’ll help make the process clear and guide you through every step. Contact our team today.