Whether you area first time home buyer or a seasoned property investor, it is always good to be reminded of smart property investment principles. Given such, I have decided to share with you the following piece provided by our very own CENTURY 21 Chairman, Charles Tarbey, which appeared in the June edition of CENTURY 21 Wentworth’s Property Investor
Five Tips for finding (and structuring) the perfect investment property
By Charles Tarbey, Chairman of Century 21 Australasia
1. It all starts with finance;
Before scouring the market for opportunities, it is worthwhile to firstly define how much debt you have access to, at what price and whether servicing that debt is within your means.
2. Develop a relationship with your local real estate agent;
Real estate agents ‘live and breathe’ property; building and maintaining a relationship with an expert agent can often be very rewarding.
3. Buy during favourable market conditions;
Like investors across most asset classes, property investors try to purchase property while markets are depressed in order to receive strong returns as markets recover. At present, investors can secure relatively cheap finance (with more interest rate cuts likely); there are strong stock levels on the market.
4. Location, Location, Location;
While a landlord can renovate a house to make it more attractive to tenants, the house itself can never be moved to a separate suburb – making the ‘location, location, location’ adage as true today as it was when it was first said.
5. Look beyond your horizon for opportunities;
While there are obvious advantages of investing into a known local area, it’s often worthwhile to assess the prospects of investments further a field in the quest to secure higher yields and capital returns.
For a detailed summary please head to CENTURY 21 Australia blogs
Source: CENTURY 21 Australia blogs, www.century21.com.au/blogs