So do you purchase a Unit,
Duplex or House?
Many people have a favourite type of property that they would want to invest
in. Yet they forget it's not us that controls what is the right type of
investment for the area we select.
If we want to maximize on the investment we need to basically give the
tenant what they want, so it must suit their requirements for them to rent
out our investments.
An e.g.- A "BEDSITTER", many people would not even consider a bed-sitter,
yet in the right area it would never be with out a tenant.
Many clients I talk to always want a property that they have wanted to live
in, they don't consider or even look at where is the ideal location where I
get the best return on their money, now and for long term.
What is the type of tenants are living in the area?
What's the average income earned?
Another important aspect to know is how many people and are the age groups
are moving
into the area, what is its long term aspect of the area?
Are they families, pensioners, yuppies or dinks-(Double Income No Kids) type
of tenants?
This will also tell you if you need a low maintenance property or a 4
bedroom home with a yard for the kids to play.
You must also know what is actually bringing these people to the area.
Is it Lifestyle, work, cheap rent, transport etc?
I personally go for the lifestyle, because people love a great lifestyle and
don't mind paying extra rent for it but as investors we must outlay a lot
more money for it and not many
people can afford to do this.
The same goes for capital growth, do you target an area that has had its
growth or do you try to find areas that have a long term plan for shopping
centres, schools, universities,
hospitals, office, residential, commercial, industrial and expansion for
transport etc.
Lately most of my clients have purchased in an area where the potential is
till 2025, new CBD with a demand for rental properties and close to
everything that a tenant would need.
This is why it is so important that you get the right chemistry for your
investment, it helps you in the long term when finding a tenant and for
capital growth.
Plus if for some reason you need to sell the property you have already made
your gain.If you would like some information on the areas that many of my clients and
I have purchased, please email me.
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