With 2009 behind us, the property market is looking its healthiest since the
global financial crisis. With the market on the mend, and steady growth
predicted for 2010, now is a good time for investors to either get back into the
market or for first timers to enter the investment scene.
deciding whether to enter the investment arena, you first must decide upon your
goals: do you want to maximise your capital gain, your rental income or both?
What is your budget? This last point is perhaps the most important. While
capital growth and rental yields will significantly influence your decision,
making sure you can afford your investment is paramount.
There are five top tips for finding the perfect investment property that everyone should take under consideration.
1. When purchasing an investment property, the decision should be
emotionless, focusing only on the return and growth potential.
2. Never buy above the average price in the selected suburb.
There is guaranteed to be more scope for capital growth when you buy below the
3. Always buy properties in top condition. Unless you are skilled with a hammer and have plenty of spare time, this will maximise your investment.
4. If possible, buy new or near new to ensure maximum depreciation claims and to avoid maintenance issues in the first few years.
5. Find a good real estate agent and maintain regular contact with them – use their significant experience in the industry to your advantage, rather than blindly conducting internet searches and attending copious open homes.
These five tips give you an idea as to the mindset you should be in, and first actions you should take when beginning your search. Now combine this mentality with looking at eager vendor situations (e.g. divorce settlement, buyer has bought elsewhere, deceased estate), growth fundamentals and long listings and you will ‘strike gold’ with a bargain. There are of course no guarantees with property, but you make your own luck. Happy hunting!