Choosing an investment property is a big decision. After all, you only have a few chances to get it right, and if you’re someone who wants to (or needs to) retire within the next 10 years, then you only have one chance to get it right.
So let’s make sure your selection is a good one.
Below I’ve put together two checklists. Both are important for helping you make the best investment. There’s one list you need to go through personally, and another that will require the help of a professional.
1. The checklist you need to take care of personally
Here’s a short checklist of questions you need to ask yourself when buying an investment property. You don’t have to know all the answers, but it will help you to be aware of what a good investment looks like. A good investment is one that will be profitable, within your means, and help you to achieve your specific financial and lifestyle goals.
- Does the area have a good potential for capital growth?
- Am I buying below market value?
- Can I increase the value of the property with improvements or renovations?
- Am I borrowing within my means?
- Have I planned for a rise in interest rates? Could I still pay the bills if conditions change?
- Have I calculated my rental yields and holding costs?
- How will I maximize my tax deductions?
- What is my exit strategy? Will I sell when the market is at its peak, or hold on to as many properties as possible for the long term? Look two moves ahead.
You don’t have to address this list all on your own, but you do need to be involved in this decision so that you can make an informed decision and choose the right property for you.
Potential for capital growth
If you’ve read our other articles, you’ll know that Capital Growth is the backbone of our strategy for property investment.
You can make some good purchasing decisions based on watching the local market, but to maximise the capital growth of your investment, there is more powerful research you can access that will allow you to find high-growth areas from anywhere in the country. This research allows your predictions to be based on real growth numbers rather than rumours and anecdotal evidence.
The property investment decisions you make now, at the very beginning, will have a MAJOR impact on the overall amount of wealth you are able to acquire over your lifetime. So if you’re going to get the absolute best possible return on your investment, having access to scientific analysis of every suburb in the country will help a lot.
2. The capital growth checklist (professional research).
As property researchers, we spend our days studying economic drivers that affect the supply and demand of residential properties throughout Australia. These drivers include:
- Economic trends and forecasted growth/decline
- Population growth
- Future demand for residential properties
- Major infrastructure projects
- Dwelling supply information
- Household demographics
- Population trends
- Identified drivers of capital growth
This research is just the beginning, because it may identify the right suburb or street for you, but you’ll still need to identify specific properties for sale that are going to out-perform the market.
Are you in the market for an investment property?
Our concierge service takes care of the capital growth checklist, and we take it further to find and recommend specific properties for sale. But we also walk you through the first checklist to make sure that your investment is the right fit for you and your finances. We consider this mentoring aspect of our service essential, because making informed and confident decisions is where true peace-of-mind comes from. And there’s no other equivalent service in Brisbane.
Phone me today to find out more, or visit our Property Concierge page here.
Andrew Clough | (07) 3510 2122