Have you been researching property for some time but are yet to actually purchase one? Do you wish you had weekend plans that don’t include traipsing around auctions and attending open homes?
Deciding where to invest will depend on your individual goals, the amount of money you have to spend, and what property/s you might already have in your portfolio.
Before we get started helping our clients purchase property we like to sit down with them to get a good understanding of what they are trying to achieve. A personal risk analysis is conducted which equips us to provide them with the very best advice, based on their specific situation.
When setting financial wealth goals you always start with the end in mind and work backwards to your current position. Do you want to pay off your own home in the next 5-10 years? Generate a passive income of $100,000 p/y in retirement? Be able to provide a good education for your kids? Maybe you just want to maintain your current lifestyle and continue having choices in life…
We understand the challenges you may be facing and share our three top ways to spot a great investment property.
Three Ways To Spot A Great Investment Property
1. Follow Property Cycles
Picking the right real estate market is incredibly important and it’s not wise to buy in an area that has been on the list of ‘hot spot’ areas for a few years already.
If you invest in a rising property market in the early stages you will benefit from the growth.
Savvy investors know that Brisbane is a great place to invest today as it is on its way up. Whereas Sydney has already experienced high levels of growth and we don’t know how much longer Melbourne will continue to be on the rise.
Steer clear of small boom towns and head to cities because they offer the best long-term prospects. However, it’s not just any old property in a city that will do.
To provide the highest level of return there are many factors which must be taken in to consideration and when working with our acquisition team they choose stock strategically and in line with a very strict criteria, which we have built on and perfected over the years.
2. Stick With The Big Cities
Capital cities tend to have more infrastructure, a greater number of jobs and a higher population. This equates to a significantly higher rental demand than in other areas, resulting in lower vacancy rates.
We find that this is one of the most common concerns which our team hears from those wanting to invest – what happens if our property doesn’t rent? Investing in the ‘right’ areas will reduce the risk of having an investment property sitting empty. But, where to buy?
3. Diversification Is Paramount
Our clients’ portfolios will consist of properties in different areas and even different states. Markets grow at different times so if you have a property in each of the major capital cities you should have good capital growth overall, year on year. This strategy will also help you avoid land tax, which if not done right can impact your bottom line.
The list of important criteria can (and does) make a long list of research points, which can be stressful for some. Over many years of working in the property investment space we have created a detailed list of criteria that each and every one of our properties must meet. This ensures a positive result for our clients – we do the hard work and our clients enjoy the success.
If You Would Like To Learn More
If you’d like to know more about the kind of research that we do on your behalf, we’d be happy to talk it through with you in person when you are ready to start investing in property. We can be contacted on 08 6323 2306 or info@curtispropertygroup.mysit3.com
