Too many times we hear from people that have purchased their first investment property emotionally. It performs poorly, and has taken a long time to see growth, if any…and sometimes go backwards!
Avoid the emotional traps and study the market based on facts, figures, data and research.
Many people want to buy in their local area for many reasons… it could be because they feel they know it or understand it better, know the kind of socio economic demographic or simply like the area and houses within it and consider it a good suburb of high demand. The biggest for most people is that they want to be able to check on the renters!
In my early years of property investment, I made purchases based on these factors, and i have to say that although they eventually had some growth….the facts are is they they were my worst performing properties and restricted me from buying sooner and leveraging against them.
Nowadays my purchases are based on solid facts and figures. i follow a strict guideline, and consider every market around Australia before purchasing. I want to buy something which is at the bottom of the market and has opportunity to grow, with economic factors which drive it forward.
Considerations like infrastructure expected in the area, transport links, shopping malls, population and ABS figures, residex and rpdata figures, council projects, government spending, vacancy rates and so much more…
My best performing properties have most often been in areas of projects that i would never even consider moving into. Remember its a vehicle for wealth, not a house that you will live in!
I often buy ‘ugly’….what that means is that i will often buy in areas that are under construction, have major roadworks, and basically look pretty ordinary…but I can see through the ugliness and see the potential of the new development. For me, these areas make my heart race now, rather than sink.
For some further clarity on what to look for, get in contact today!