With a population estimated at 196,037, Canberra is Australia’s eighth most populated place. It is a great place to look for real estate investment options that will help you make income. As a way to make rental income, or even a large profit margin, investment property is gaining popularity.

Real estate investing isn’t as easy as you might think. Real estate investments can be risky because of rising real property prices, as well as the volatile market. If you’re thinking of buying an investment in property, investment property CanberraHere are some things you should know.

  1. Get your Credit Score

Recent data shows that Canberra household’s average weekly income is approximately $2,087. Australia has three credit bureaus – Illion, Equifax, and Experian. To determine creditworthiness, lenders will review your credit history when you apply to for a mortgage loan.

A credit score of 661 or higher is considered good. Credit scores above 853 are excellent. Most lenders will approve mortgage loans if your credit score exceeds 661. To make an informed decision on whether to invest, you need to examine your credit history. 

  • The Total Investment Cost

The latest figures show that Canberra’s total housing stock is approximately 82,693. Investment property in Canberra is expensive. Bruce in Belconnen is Canberra’s most expensive suburb. The median price for a property there is about $367,000. The Gungahlin area’s real estate market is also relatively affordable, with a median home price of $390,000.

When buying Canberra real estate, it is crucial to take into account the costs of registration and stamp duty.

The registration fee is around 0.1% to 0.06% and the conveyance fee ranges from 0.4% to 2.00%. These fees are paid by the buyer and seller. Simply put, it is important to calculate the cost of buying a Canberra house.

  • Find Neighborhoods

Prices in the real estate market fluctuate frequently due to a variety of factors including the differences between demand and supply. Canberra covers an area of 814.2 square kilometers. It is divided into seven districts. There are approximately 8 to 18 suburbs in each district, while some districts may have 25.

If you are looking to purchase an investmentProperty should be considered from the perspective of the tenant. Many tenants choose affordable suburbs such as Page, Evatt and Palmerston. These suburbs have weekly rentals ranging from $450-$600 and rental prices are increasing at an annual rate of 7%.

Canberra boasts many universities and top-class colleges, so international students are attracted to the city. It is therefore easier to locate tenants in these areas, as international students are always looking for affordable accommodation.

  • Fixed and variable expenses

An investment property purchase isn’t a quick and easy transaction. There are several inherent expenses related to maintaining the property, and you can divide them into two categories – fixed and variable. To meet these costs, you need to plan accordingly. Here are some fixed expenses to be aware of

  • Property taxes
  • Cleaning and landscape maintenance are some of the general upkeep expenses.
  • Management expenses for property
  • Homeowner’s insurance

Variables include unanticipated costs such as replacing the water heater or fixing the roof following a storm.

  • Differential Down Payment

For investment properties, the down payment requirements can be different. One example is that some homeowners may ask for 10% while others might need 20%.

The investment property is not eligible for mortgage insurance so you will need to pay higher home insurance payments. Look for investment properties that are affordable and make the right choice.

These five points are essential to remember when you’re looking for investment properties in Canberra.