Top tips for choosing an investment property.
MAY 2011
With softer house prices, high rental demand, interest rates on hold, and plenty of available properties to choose from, investors are snapping up opportunities. Here a few top tip for successful investing:
- Determine your investment goal first. Is it to retire earlier or richer, to supplement current income or completely replace it?
- Are you investing for capital growth or yield? Your goals dictate your investment strategy and therefore the type of property to invest in.
- Calculate your borrowing capacity, with expert advice ideally, and choose a price point you can afford and one with strong rental demand.
Only once you’ve addressed the above should you start searching for property. Research the suburbs with the highest growth over time, and see how they performed before, during and after economic downturns. Growth suburbs usually have lifestyle appeal and proximity or easy access to the CBD, transport and quality educational and shopping facilities.
Explore areas with:
- Limited land supply for mass developments
- Large infrastructure developments
- New & expanding industries
- Stable and/or growing employment
- Rising population
- Consistent rental demand (low vacancy rates)
Explore properties with:
- Value-adding potential
- Parking
- Street appeal
Stockdale & Leggo agents are well-equipped to support both first and seasoned investors in their property transactions. They draw on a long and successful history and also understand that successful asset management for long-term security requires a forward thinking, long-term approach.