What Criteria Would You Use To Buy Investment Property?
Would you buy from locations which are well-researched and show evidence of future capital growth? Look for locations where land supply shortages, skilled labour shortages, increasing population, and increasing average wages?
Ideally you’d want all four, right? You want data/evidence to support multiple employers and diverse industries.
You’d want to plan or if you’ve already got properties, diversify your portfolio across multiple locations to reduce exposure to a single market with exit strategy investments.
Buy investment property, ok where to invest in positive real estate and or cash flow property? Generally speaking, Australian property values used to double every 7-10 years and this happens at different times in property cycles.
Positive cash flow property has over the years become a great deal for many property or real estate investors…so maybe you’re thinking is positive cash flow property complicated or is matching what you say to what you do more complicated?
In terms of how to buy investment property; number of alternative property investment strategies, vehicles, research, tools and software platforms etc, does not in itself make finding positive cash flow property complicated…
Buy investment property – positive cash flow is still the most misunderstood strategy, yet it doesn’t matter what property you’re looking for if you know how to do proper research, target the right demographics you can always lock in your profits.
The biggest problem is in itself interesting to find out why so many new home buyers and property investors don’t ask many questions or do as much research as they could because most will only use basic overviews of the top capital growth areas.
Unfortunately it’s a common problem because there’s still a lot of misinformation around how to correctly buy investment property and find positive geared property, while safely entering the property investments market…
Here’s a quick overview how to buy investment property and establish yourself in a much stronger strategic position for good investment rental property with structures in place for considering buying investment properties in Australia.
One of the most important criterias for how to buy investment property is where to buy investment property because not all areas are created equal in terms of high yield or capital growth.
Cost: A lower than median cost for land with the expectation there’s a stronger and better opportunity for growth in the short to medium term. Land in some outer suburbs or newly released estates can remain under valued for sometime…
As these areas become more and more populated, their price always comes up to the average house price for that city. Additionally, land in some growing country towns may be worth looking at.
Of course, there are many other overlooked and underestimated problems and other factors you need to be aware of here, and depending on your own financial situation this may be an appropriate strategy for you.
Rental vacancy rate: Different areas have different levels of tenancy. There are areas that right now have close to full tenancy of all available rental stock, and with an increasing population in those areas, this is set to continue.
Local amenities and infrastructure effect both price and rental vacancy rates. Availability of local schools, public transport, roads, shopping and other facilities effects value of the area, and plans for future construction including land release impacts the yields and capital growth.
It should be noted investment property doesn’t have to be located anywhere near where you live. The reason why you buy investment property is in essence, you’re building a business and property which is the asset used for generating tremendous amounts of income…does it sound like a strategy that’s of interest to you?
If property managers are managing the rental property/properties for you, just remember you need never physically have to visit the property. This can easily unlock a significant amount of your time and solve a huge problem quickly.
There are several hidden booming areas ideal for positive cash flow property investment in Australia. The professional team at Property Investments Now keep up to date with trends and have a unique selection criteria for specific regions.
If you would like to learn more about real estate, finance, personal investing ideas and strategies to buy investment property and find out where to invest in positive cash flow property click here for your complimentary property coaching session.
P.S. What if you could easily accomplish three critical and strategic investor goals securing your investment property in these areas, despite extremely high demand…does it sound like a property investment strategy that’s of interest to you?
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