in property range from serious full time professionals, to those diversifying
their portfolio to individuals, making once off second property purchases. The
largest property investors of course are the large corporates who manage listed
property companies and property unit trusts.
recent years, there has been a remarkable growth in smaller investors who have
begun to realise what the big boys have known for years – with the right buying
decisions, property will beat most other investments with good and sometimes
phenomenal returns. They are replacing traditional endowment and other policies
with property investment as part of their retirement planning.
to stock market investment, which is based essentially on emotion and opinion,
property investment is based on real tangible value – which will constantly
things in life are better if you take the time to plan and prepare for
them. It shows responsibility, forethought, consideration, anticipation –
a common success factor in many areas. Investing in property is no
different, yet we often see regular investors burn their fingers when they have
failed to consider the basics before purchasing a property.
people choose residential property investment ahead of other kinds of property
because they are familiar with it and feel comfortable investing in it. It is
important to stay reasonably within your field of knowledge. However, it may
also be worthwhile considering a commercial or industrial property investment.
This is a specialist area and advice should be sought from a specialist
commercial agent. For more on Commercial investment go here.
yourself some time to watch market cycles and movements in property values before
putting yourself in the hands of the experts. Take your time is discussing
issues with your agent. Beware of property investors drawing you into their own
schemes – they have a vested and therefore biased interest.
style properties of quality construction generally hold their appeal longer.
Also important is to consider smaller issues such as properties with security
features such as door and window screens, alarms. Double garages are very
investment property has noting to do with what you want and everything to do
with what clients want. You DO NOT invest in a property because you like it but
because it will offer a return. Find out what properties are most popular and
have the most seekers. Avoid specialist properties and top end of the arket
where renters are few. You want to be able to replace your tenant easily.
aesthetic appeal of a home can affect the rental value and vacancy rate, the
location of the property will also affect its profitability. Homes close to
schools, shopping centres, and public transport, or located in fashionable
suburbs, tend to be more desirable and may command higher rents. Tenant are not
investing – they are looking for comfortable living and convenience.
areas with a good track record of capital growth. Capital growth tends to run
hand in hand with good infrastructure. Look for streetscapes that are architecturally
consistent rather than a mix ‘n’
match of styles.
unique specs relevant to a particular area you are looking to invest in. For
instance, off-street car parking is a bonus, particularly in inner city areas.
High security measures in higher crime areas
to fresh approaches such as buying development land jointly with others
- each has a small investment and when the time comes (patience is key)
tidy profits can be made.