Lets face it; getting started in property investment is a big decision. Ultimately it’s a very sensible decision, but a big one nonetheless.
Taking the step into investing in property requires you the buyer to be as informed as possible before making your selection. Not only of the property itself, but also of the location of the property, the style of property and the type of investment you’re looking for. If you’re already an experienced investor, you want to know that your next purchase has the best chance possible for future growth.
What does that mean?
Among other things it means:
- What part of the country represents the best value to you right now?
- What type of property are you looking for?
- Are you a positive cash flow or capital growth investor?
With so much information in the market and not all of it designed with your best needs in mind, how do you navigate the noise to find a property that suits you?
Here at Turnkey Property Group, we believe that our products speak for themselves. As investors ourselves, we’re only interested in property that fits the criteria of:
- Solid potential for growth in established locations
- Multiple pillars of industry
- Supported by significant government investment in the area
If we look at this criteria more closely you’ll see what we mean.
Solid potential for growth – Chasing positive cash flowed property, while it may serve a purpose in some portfolios, isn’t always the best strategy to get ahead in property investment. Positive cash flow of a couple of thousand dollars a year is attractive, but the greater gains are made in capital growth.
A property worth $450,000 that rises in value only 5% over 12 months rises in value by $22,500. For a normal purchase, this is equity that you will be able to tap into in order to help finance another purchase in future. Generally, the greatest opportunities for growth are in established cities and right now, Australia is seeing very high growth in all capital cities.
Multiple pillars of industry – This means, don’t invest in one-horse towns. This means, don’t invest in one-horse towns. That wasn’t a typo, this part is critical.
What’s a one-horse town? A town that relies exclusively on one industry, like mining for example, with no other industry, is what we consider a high-risk investment. Any area you choose to invest in should have at least 5 – 6 solid pillars of industry such as:
- Port facilities
- Transport hubs etc.
This way, if any one of those industries close down the whole market is not left exposed in a vacuum.
Supported by significant government investment in the area – If the state or federal government is spending hundreds of millions of dollars in an area, this is a clue that their research indicates the area is set to grow. Look for things like highway widening or extending train lines, large government offices opening, hospital developments etc.
We understand this is a lot to contemplate and in these time poor lives we lead we know that you want the best service possible. If you’d like the opportunity to speak to one of our experts, fill in the form to the side of this page for a free 15-minute, no obligation consultation and you’ll be contacted by a real person to discuss what kind of property investor you want to be.
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