Buying an additional property is one of Australia's most popular ways of investing. It is a most accessible method for the average person to increase wealth and secure a financially strong future.
If you are considering this strategy as proven means toward financial growth, there is a considerable amount of research involved. One of the first and most important tasks is to identify the type of property that makes the best investment.
Here are some of the main factors that contribute to a successful property investment. Use this as a checklist when assessing your list of possibilities.
You need to obtain an indication of how many properties are sold in the area per year, particularly in the price range you are considering.
It is best to choose property in an area with plenty of depth in the market to allow the best opportunity for a future sale.
Be wary of acquiring a low cost opportunity in a little country town, as there may not be enough diversity in the market.
You can usually count on major regional centres and capital cities to offer enough market growth for a profitable sale expectation.
Living in close proximity to a major city, for example within around a ten kilometre radius, is a most highly desired feature. While these properties may be priced out of reach, keep a look out for nearby and fast growing suburbs, as these are very likely to experience strong market growth.
Some ideal places to consider are those that are going through population growth. The continually improving infrastructure and new community facilities will increase desirability.
Try to avoid properties in an area that depends on a single industry, such as manufacturing, for economic prosperity. Although this may be a benefit while the industry is thriving, it can be disastrous for future property values if the industry should fail.
It is always wise to pose the question about who will rent your property and why. Does the location appeal to the largest demographic of renters in the area? Find out if they are mainly married couples, singles or retirees and what their likely preferences are.
After establishing the type of area that is suitable, choosing the correct location within it is essential for acquiring a first rate investment. A desirable position will always provide the opportunity for capital growth as well as higher rental returns. One attribute that is always highly sought, and will increase property value, is a close proximity to important amenities. These include:
Retail shopping and markets
Lifestyle activities – restaurants, beaches, cafes
Public facilities like transport, schools, medical centres, parks, post offices and libraries.
The extent of the research and information needed to make an informed investment choice can be quite overwhelming. Very few investors have the sufficient time, energy and resources to devote to the task of making proper evaluations of numerous properties.
For this reason, many investors seek the professional assistance of a buyers advocate to help them make the best decisions.
How a Buye's Advocate Can Help
A buyers advocate has access to specialized real estate information. They have all the necessary data about locations, property developments and demographic statistics at hand. They can promptly analyse, critically evaluate and source potential properties.
A buyers advocate will work to understand your goals and carefully source the right property for your circumstances.
After identifying the property, they can then use their professional skills and experience to conduct negotiations for the property on your behalf.
If you are keen to enter the investment property market but have been hesitant about making the move, a buyers advocate can provide invaluable assistance. They will handle all the time consuming research as well as skillfully negotiate the buying process. They can assist in making your goals become a reality by applying their expertise to achieve your best possible outcome.Share