Buyers’ agents are constantly asked “where is a good place to invest” and “what type of property do you recommended I buy to maximise my returns?” As a property investor you need to take a step back and ask a more fundamental question…“what do I want this investment property to do for me?”
Taking a strategic approach to investing in property means you need be clear on your goals and the returns you are seeking. Are you chasing high capital growth? Or is positive cash flow your number one priority? Perhaps you are seeking the best of both worlds? When it comes to property investments there is no “one size fits all.” Your financial position, your risk profile, income and equity will all have a part to play in determining what type of property will suit your chosen strategy.
Your property investment strategy will therefore determine what criteria will apply when selecting an investment property. Choosing the right strategy and criteria is so critical to your investment success. No one wants to pick a lemon! So here are some very important criteria that you need to carefully consider when weighing up various property options.
Don’t be swayed by glossy brochures and slick marketing material when choosing your next investment. Look at the fundamental drivers of supply and demand. Examine the data and crunch the numbers. It will make a world of difference when you look back in seven years time.
There are three broad categories that you must consider when evaluating investment property. These are:
- The location
- The market drivers
- The individual property
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This report has been compiled by our good friends at www.propertybuyer.com.au