Whether you’re a first time or seasoned investor, it’s often tricky to predict the next big location for buying an investment property. Even the experts sometimes get it wrong.
There are a few things you can learn to look out for when considering where to invest. Here are a few quick tips :
Ponder your tenants. Any potential investment property should be considered from your ideal tenant’s perspective. Is this a place where they can set up a happy home? When you’re renting location is a top concern, look for investment properties that make tenants’ lives easier – close to shopping, schools, transport, hospitals and recreational facilities. If you’re looking beyond the capital cities, consider towns with growing populations and good infrastructure – you’re more likely to get a greater return on your investment.
Go one street or suburb over. If you’re priced out of a particular area start looking in neighbouring streets or suburbs. These are more likely to be the next big thing as others look for better deals on the edge of popular areas. You could bag a bargain that gives you a brilliant return in a few years.
Ignore the glut at your peril. Do a bit of research – if the suburb you’re considering has a high vacancy rate, walk away. A glut of rental properties in the area is a good indicator it’s not the right place to invest.
Disregard one-trick ponies. Look for suburbs or regions that have more than one opportunity for employment. A great investment location will have more than one demographic interested in living there. Make sure there’s a mix of factors involved in the investment opportunity, such as location, transport, infrastructure and investment/development.
Buyer Beware. Don’t be sucked in by “Property Spruikers”. Just because they say it, does not make it so. Validate any such advice with information sources from others and your own research. Study the market and location over an extended period to ensure you know what is trending and happening there. Often your gut will tell you!
Investing this year? Let’s chat. I can give you the low down on everything you need to know about investment loans and loan structuring but were afraid to ask.