There are a lot of misconceptions about an investment property, which is why it’s crucial that if you are planning on creating a property investment portfolio, you enter the matter well-informed or, at least, have a good idea of what makes a great real estate investment.
What you need is an investment property that has a potential for capital growth, such as a residential property in the right location and one bought at a right price.
But did you know that you can still maximise capital growth with the right strategies? As an investor, this should be your goal.
What do you need to do then?
Choose a property that…
Is Located in a place with strong economic growth
When a city or suburban hub is seeing a rise in economic activities and developments, the number of jobs and demand for housing will also rise. People often flock where opportunities are, after all. If you have a property to let in such areas, then you’re ahead of your game.
Sydney and Melbourne are two cities in Australia that have the strongest economies. But buying a property in these locations can be quite expensive. Your next best option are neighbouring cities, regional areas, and those close to the CBD, where the real estate market is friendly to property investors and the availability of tenants are high. Purchasing property in places such as Werribee, Wyndham Vale, Doreen, Frankston or Pakenham provide fantastic opportunities for investors.
Offers convenience
People are willing to pay a little bit more to live close to public transport, shops, or schools. But they pay highest if they can live close to where they work. There’s no price to pay for the convenience it affords them. Such properties gain higher buyer interest as well, making it an ideal investment.
Is a house instead of an apartment
In most places, houses perform better than an apartment where capital growth is concerned, mainly due to the land component that a typical apartment does not include. So you might want to make a house & land package a priority when searching for real estate investments. When building a house, make sure it has the features that attract more tenants, such as good-sized bedrooms and a fully functional kitchen. If you want a hands off approach to property investment, purchasing a house and land package means that you can provide your tenants with a new house without any hassle for you.
5 tips for investing in property
Start investing in property
Need help getting started? iBuyNew will point you in the right direction! Whether you are looking for apartments, townhouses or house and land packages, working closely with an iBuyNew property consultant, who understands the market, will help you find something suitable that’s tailored to your needs and requirements. Get in touch with them on 1300 123 463.
1800 184 284
