Separating emotion and logic when it comes to property investment is no easy feat, especially when the stakes are so high; the stakes being your hard earned money. The most imperative attribute to seek in purchasing an investment property should be the capital growth potential it possesses. Securing a property that will not only remain in-demand, but will appreciate in value in correlation with inflation and maintenance expenses should be your top priority. Purchasing a property solely based on its location and appearance – though these factors are important- without taking into consideration the local market conditions, could potentially stunt the capital gains or return on investment you receive. Here are some helpful points to consider before making the purchase, to get the most out of your investment:
Let’s face it, your budget is going to be the driving force in determining what is viable for you to purchase. Meeting with a mortgage broker or lender before looking at properties will save you a lot of heartache. There’s nothing worse than falling in love with a property that is out of your reach.
Narrowing your search:
With your budget in-check you’ll be able to narrow the list of potential property locations available to you. Calling agents within these areas will help you understand what kind of property you can look at, in sight of your budget. You can then highlight the preferred pockets in each suburb and look into the sort of capital growth each are experiencing or are forecasted to experience.
Deciding what you’re looking for:
Your budget may afford you a humble property close to amenities in some areas or a property with more character but further away from amenities in another. It all depends on what you’re looking for. Suburbs offering lifestyle facilities such as schools, large parks and nearby shopping centres are often favoured by renters and buyers. Properties with ocean and city views are also often desired by buyers and sought by renters but undoubtedly come with a higher price tag.
Meet the neighbours:
Too often buyers get fixated on a particular suburb because of its reputation, amenities and property pricing despite not being able to find exactly what they’re looking for within it. Looking to the neighbouring suburbs can often prove worthwhile and profitable. If you can’t find what you’re looking for in your suburb of choice, look to those surrounding it. More often than not they offer similar attractions and are close enough in location to your first choice to utilise their amenities without having to compromise your property wants and needs.
Regardless of property location, whether it be in the outer suburbs or the inner city centre, transportation options are a major purchasing point. Access to the railway is a major plus for outer suburb living as it makes it easier to travel into the CBD. Equally, access to freeways and main roads are a major plus for any property location to assist in travelling both in and out of the CBD and to other major business hubs. The more accessible these conveniences are the more in-demand the property will be, which in-turn will assist in generating a higher return on your investment.
If you’d like to learn more about return on investment and how to make it work for you in your investment decisions, contact Nieuvision for advice.