The passion of the Australian public for investment property is well documented. Choosing an investment property is very different from choosing a residential dwelling for yourself: it’s a financial decision and not an emotional one. Many factors go into making an investment property worthwhile and these factors can often be complicated, especially when factoring in population and demographics. Two properties that appear to be equally good investments can perform differently in reality. The role of property investment specialists with extensive knowledge and research capacities has grown as more people seek to minimise the risks of investing in property. Here are just some of the criteria property investment specialists may look for when they assess a property for investment.
Tenant-friendly properties are well located, generally within a capital city, or as close to the capital city as possible. Location is a simple matter of supply and demand; most people want to live as close to the metropolitan areas (and employers) as possible and to reduce their commuting times.
Other local features, such as local infrastructure and amenities, will also be a positive factor for capital growth. There’s no definitive rule as to how centrally located a property should be but generally speaking, it should be as close to a capital city to encourage capital growth prospects.
Properties with unique features will tend to see more capital growth over the same period. Properties are unique investments that are quite different from shares or stocks. Each property has its own characteristics and features. Anything from the garden aspect, the size and shape of the land, views, to balconies and pergolas will enhance the attractiveness of any property. It’s a proven rule of property investment that buyers will tend to be willing to pay more for properties with unique features than generic properties, even in a time of recession or contraction.
Like location, local infrastructure is a serious consideration for any property buyer. This can be seen in the fact that certain suburbs around Australian capital cities consistently experience better growth and higher average prices over the long term.
Some of the things professional property investment specialist may look at in profiling the investment potential of a property are:
- Suburb developments and quality of roads
- Future infrastructure developments
- Local facilities, such as schools, parks and sport grounds
- Amenities such as shops, restaurants, medical centres, and public transport
Seeking Professional Assistance
Consulting a team of specialists is essential for effective property investing. There are countless properties on the market and, numerous factors can contribute to the long term viability and capital growth potential of properties.
Real estate investment professionals conduct in-depth market research, eliminating the risk of you ending up with poor investment options. Financial professionals and property lawyers can also be of invaluable assistance for guiding you through financing issues and legal requirement.
As property is a relatively illiquid investment, committing to a purchase without sufficient professional assistance can be a costly business for you and your family. Always consider seeking professional assistance and avoid going it alone. Choosing a good property for capital growth and investment is an opportunity best seized with the experience and expertise of those in the industry, with experts who know how to fully exploit the above property tips.