Thinking of building a property portfolio?
Investing in property is a long term game, the best outcomes are usually due to the time you have owned the property as well as investing in property in the right market.
Owner-occupiers are the biggest percentage of buyers in the market, and create demand which in turn drives capital growth. They are fussier than someone investors, as they are buying to live in the property and often get very emotionally involved in the investment.
So, how does this affect buying investing in property?
Well savvy investors should take note of what is desirable to the majority of people investing in property as these are the properties that generally have the highest growth.
One of the main things to take into consideration when looking for an investment property are it’s location, most people have heard the saying “Location Location, Location’
Other things to look for when investing in property, are quality schools nearby, shopping centres, recreational parks, clean waterways, transport systems, airport to name a few. Most importantly would you want to live there? More than likely if you wouldn’t want to live there chances are no-one else would either.
In addition to owner occupier appeal. There are other attributes to look for when investing in property such as, scarcity. Scarcity of location can be important and this involves buying close to a city centre, where there is little land left, close to public transport, the beach, or employment centres. What sets the property apart from others in the same area, perhaps it has a desirable courtyard, garden, high ceilings, unique features, huge master bedroom.
Great local amenities are desirable when investing in property, if someone feels connected to the culture and people of an area, they will pay more.
Lenders also take a good look at the property itself, investors need to buy the type of property the banks love to lend against, for investing in property and owner-occupiers, after all property investing is a game of finance, not just bricks and mortar.
Investing in the right property, in some areas, a large amount of apartments are being built and being targeted to the investor. There is a risk of oversupply when two or three similar buildings are sold at once, meaning growth could be slow and finding a tenant more difficult. These properties often have minimal appeal to owner-occupiers.
Our view is when investing in property, consider buying an established house or older-style low-density unit, in a great location close to a major capital city, you can create depreciation later through a strategic renovation, thereby creating your own tax benefits in the future. Getting the fundamentals right from the start is the best strategy when investing in property.
Click here to read about more Investing in property Tips-https://www.realestate.com.au/advice/buying/first-home/
Contact Carolyne for more Home Buying Tips or call 0424 990885
Post By Carolyne Hawkes Northern Beaches Estate Agents