What Makes A Good Investment Property

There are so many options out there when it comes to investing and everyone is an expert. From family members, friends, sales people and the media.

This article is aimed at DIY investors that want to sharpen up their real estate purchase without having to get advice from sales people.

Some tips are from Australia’s most successful investors and what they do when buying an investment property.

8 Tips To A Smart Investment

Planned infrastructure

Properties located near train stations, schools, shopping centres and other amenities bode well for investment growth. This is a result of their increased reputability and lifestyle appeal for renters and buyers.

When spotting a good investment suburb, look for any planned infrastructure, which may positively impact the future sales price of the property. You can get this information from local council websites and government transport organisations or the Victorian Infrastructure Plan site. 

Explore different suburbs in Melbourne

Try not to mentally restrict yourself to the suburb you’ve grown up in or by the type of asset you want. Many investment opportunities exist within the property market, including off-the-plan, rural and commercial property. Be open to the possibilities. Jump in your car, hail a bus or catch a train to a section of your city or area you’ve never explored and get to know it a little better.

Previous sales data

Realestate agents us property reports to show suburb price growth using monthly, yearly and 10-year comparisons. A buyers advocate take’s the time to obtain and analyse this data – it will identify market peaks and troughs, as well as dormant suburbs that are on the verge of a property price boom. Check out some of the below real estate data providers for more info. 

• Home Price Guide website (last sold report) 
• My RP Data website (data provided for state and territory capital cities only) 
• Property Data website 
• Real Estate website 
• Melbourne Auction Results

Go for second best

Often, the most popular suburbs have already experienced a price peak and boom, and it could be another seven to 10 years before they achieve a similar cycle. If you invest in these suburbs, you could be paying top dollar for a slow return compared with a less popular suburb.

So, when looking for a suburb to invest in, go for the next best option – one that’s similarly priced. Chances are, you’ll be buying into a suburb that has yet to boom and will provide you with the fruits of that return.

Location, Location, Location

If you’re looking to invest in a house or unit, consider the market impact of surrounding developments, such as new housing estates and high-rise constructions. Generally, the more properties available for sale in a suburb, the more diluted the return on your investment. A buyers advocate will have in depth knowledge with what is going on around your suburb.

Buy Around Hot Suburb’s

There always a suburbs that everyone wants to live in.In the West of Melbroune it’s Williams town, in the South East of Melbroune It’s Brighton.  These types of suburbs have the best demand and highest growth when it comes to real estate. It’s natural for buyers and tenants to be priced out of these suburbs and default to a neighbouring area transferring the success of the hot suburbs to it’s neighbours. Check out our article on ‘the next hot spot growth areas.‘

Value You Can Add, on the Cheap.

Most real estate buyers stay away from property that may need a coat of paint, new garden or even a light renovation. For the smart investor, this is as easy as picking low hanging fruit.

Large Land Allotment

Every one knows the value of real estate lies within the land as the building itself depreciates to nothing through ware and tare. A skilled investors will look for property that has sub-division potential because this gives investors options such as positive gearing or cashing out through selling part of the property.

Other Factors To Consider

Research

It is easy to look at the term research and determine that researching an area is all that is required for lucrative property investments; however the word is used much more broadly. Successful property investors research every element of their purchase. They consider the information contained in articles, blogs and in property magazines to make informed decision about the property landscape. They pay attention to the finer details of the market by delving into the world of interior design and looking at the products of renowned landscape gardeners. Property investors with a successful portfolio educate themselves on the needs of the market they are tyring to appeal to. They recognise that they are creating a service for a customer and know how to tap into resources that will increase their property’s appeal.

Keeping Up With the Times

The property market moves quickly, and no one appreciates this more than smart property investors. The most successful investors constantly keep their investments in mind and regularly assess how they are doing, what should change, and how are they currently positioned compared with their long-term goals. There often comes a time when investors realise that their investment potential is under developed and they devise strategic plans to get them on track. Reorganising land, or adding additional dwellings, has increased in popularity with the increase of professional property development managers. Investors hire property development managers to supervise their projects, and their expertise helps achieve goals within budget and on time. Successful property developers recognise that it takes a village to build a profitable village.

Highs and Lows

The Australian Property market is notorious for having very high highs followed by times of unease. Successful property developers anticipate changes in the property climate and recognise the importance of assessing their investments and determining which ones to hold onto through the more difficult times. However, their research and assessments also uncover when it is time to let go of a particular property. The difference between an investor and a wise investor is their ability to expect instability and know how to handle themselves at all times.

Negotiation Skills

It may come as a surprise that not all property investors are skilled negotiators. Of course many have picked up a trick or two along the way, but more often than not they have considered accessing external support. Professional buyer’s advocates are skilled negotiators, trained to know how to achieve a property purchase for the lowest possible price and with the most advantageous set of conditions. Utilising the support of a buyer’s agent helps position investors to maximise the value of their acquisition.

For an obligation-free conversation, contact Wise Realestate Advice on 1300 009 473 to discuss how their professional property development managers and buyer advocates can turn your property goals into property development success.

For specific information on off the plan buying, mass scale apartments, commercial property, long-term fixed lease, buying around major cities or common residential property check out our article on ‘Property Investment Advice.’

At Wise Real Estate Advice, we ensure all boxes are ticked and that sincere care is taken when providing a buyer with the wise advice and action required throughout the buying process. To speak to one of our friendly buyer’s agents click here to fill out an enquiry form or just simply call us on 1300 00 WISE.