Choosing An Investment Property
Deciding on the best real estate investment for your requirements...
If you are new to property investment one thing you should learn straight away is that property investment is nothing like buying a home. Yes you may be buying a house, but the reasons are different. When buying a property as a home it needs to suit your lifestyle, job, family needs and other personal factors, but when buying a property for investment the only thing that should be on your mind is maximising your return on the investment, that is, your profits. Yes, you may be investing in an investment property that best suits a family, but it’s not about your family, it’s about your money. Choosing the best investment property that is going to make you the most money is a hard decision, but you should definitely weigh up some of the following factors.
Unless you are targeting rich people looking for a quiet getaway, your property must be within a short distance from all the basic amenities. Things like schools, shops, churches and public transport should be on your list.
It should also be near the major employers of the area so your buyer has job options. If the property is in the city it should be within a 50km to 100km distance of a metropolis. Not everybody likes living near or in the city centre, but invest too far from the action and your potential capital gaines may be slower.
There should also be life opportunities near your investment property. Look for a school, then a college, then a University and finally a wide variety of industries that take on college leavers or highly qualified workers. Your tenants must see the area as a place they can live easily and even grow older in, along with their family.
If you are developing the property or buying off plan, take demographics in to account. You should also check the historical and future growth of an area to ensure you can make money from it in the future. Although the type of property goes hand in hand with the demographic of an area, different buildings have their own advantages and disadvantages, including fees and costs; Strata fees on apartments and estates is an example. Other things to consider are positive & negative gearing and tax.
This is not something you can do light heartedly. In-depth research has to be carried out, although when you successfully buy an investment property there is simply no better feeling.
Make Property is a business unit of The Make Group and specialises in researching and locating the best property investment opportunities across Australia. Whether you are seeking a Brisbane investment property, Sydney investment property, Melbourne investment property, Gold Coast investment property or further afield, Make Property has the investment property portfolio you are seeking.