Thoughts for Investors
Most people invest in property as a means of making a capital gain over a longer period of time.
Whether it is through the steady increase in the value of a property over time, the redevelopment of an older property or acquiring older property for the value in the land alone, similar principles apply.
It is important to find property in an area which is going to grow in value more quickly than other areas, in order to maximise the advantage.
There are many websites which provide quality advice for potential property investors and our thoughts here are not meant to provide all of the answers for successful property selection.
They are, hopefully, just prompts to ensure that some of the right questions are being addressed.
How well do I know the area in which I'm planning to invest?
Who can help me learn more about it?
Do I know any experienced property investors whose advice I could seek?
What budget do I have?
Have I checked this with my accountant?
Can I obtain pre-approval from a lender?
What is negative gearing and how will it work for me?
Location is all important: does the area have good infrastructure, access routes, amenities, range of employment opportunities?
Is it the kind of place that people would like/need to live?
What is the makeup of the population in the area?
Is it biased towards a particular demographic?
If so, how might this affect the demand for property into the future?
What developments are planned for the area in the future?
Shopping centres, sports facilities, hospitals, schools, universities, etc.
In net terms, are people moving to the area or moving away from the area?
Why, and will it be likely to continue?
What sort of property should I buy?
Residential or commercial?
Apartment, duplex or stand alone house?
In a gated complex, tower block or residential street?
What are the advantages/disadvantages of commercial property.
What are the advantages/disadvantages of buying a property in a purpose built development?
What are the advantages/disadvantages of buying a freestanding property?
Should I buy a new property, (is there a grant available), a recently built property which has been previously occupied or an older property with a bigger block of land?
How do I find the right property at the right price?
Who should I get to manage my property?
Do I have the skills, time or proximity to manage it myself?
Are management fees and maintenance on an investment property tax deductable?
How long should I be planning to keep an investment property?
Are weather events likely to be an issue in this area?
How can I make my property more attractive to potential tenants?