When it comes to finding the right investment property there is no time for browsing. Sure you can pluck a few open homes from the local paper and go along for a sticky, but if you are serious about wanting to buy a good quality appropriate investment then this is not the best approach.
So how do you go about finding an investment property? It’s relatively simple if you focus on three key elements – price, location and style.
Let’s break it down:
1. Price
Buying a property starts with a budget. This is a no brainer right? Price will be the biggest deciding factor. Knowing how much you can afford to spend on a property will narrow down your search considerably and will lead you into the next two steps to finding the right investment property.
2. Location
Your budget will immediately exclude some areas and help you narrow down the right location for your investment property. Find areas that has property within your price range and spend time researching these areas that you have highlighted as potential investment towns. A good investment location will have good economic/employment drivers (this is what brings jobs and money to the area) and good infrastructure (transport, schools, shops etc).
3. Style
Okay, now you know your price range and you have focused in on a few good areas. Now you need to know exactly what you’re looking for. Are you are looking for a house, townhouse, unit, land or something else entirely? Your budget, again, will play a large part in what you are looking for.
What type of property will your budget buy in the areas you are focused on, and more importantly, what is the demographic looking for in that area? What type of people live in that area and what style of property are they most likely going to want to rent.
What you want to achieve with the property will play a huge part in both the style and location of the property. You need to ask yourself if you want the property primarily for capital growth or good rental yields (or both) and whether are looking to hold short or long term.
Knowing these 3 elements, price, location and style, before you even focus on a particular property will help you achieve better results faster without trudging through numerous properties that are just not the right fit.
When you have finally narrowed down your choices and it’s time to hit the pavement. Don’t forget to grab a copy of our property inspection pocket book for a comprehensive checklist of what to look for in a property.
Until next time…
Chicks and Mortar – Women in Property
