Hello everyone, I would like to know how you choose a property as I have just entered the property market and I need some advice. And my questions are as follows: What kind of location would you consider as an ideal place? How would you know the quality of a property is good or not? If you just inspect the display suite or see the advertisement, you were likely to feel that everything is perfect. How much emphasize would you put on the price? Of course I hope to spend as less as possible but I also know that there might be some problems with cheap properties. I shall be really grateful if you would like to tell me more than answer my questions above. Thank you for everyone who offers me your suggestions.
You really need to work out what you want and what suits yourself in terms of time, risk and beliefs. Location - Depends on what you are looking for and how risky you are willing to go. e.g. buy in a very small town (population 20) 5 years before they discover gold and have 3 mines running you will hit the jackpot however if you don't it will be a long time before you get any capital gains and finding a tenant will be rough. Location Towns - I would only consider East coast capitals (Melb, Syd, Bris), however at the moment I wouldn't consider Sydney personally and some pockets of Melb. Quality - I will not buy OTP (see other threads), so being existing you can determine the quality. Price - Is going to be very important it is all about the numbers, however if you are talking about 300k house compared to 500k house or 1M house, I will choose the 500k house typically as it will have better infrastructure and more people can afford the rent at 500k than 1M. Really have a read and see what style people do there are many different strategies, you just need to find one that suits yourself. You can also engage a financial planner to assist you with planning and picking the correct strategy.
HI Linda welcome. I'm sure you will get a lot of advice to follow. I'll keep it short and sweet. Buy some books and learn the basics. In my opinion Its really important and there are so any topics covered in a logical order. Also the forum has an amazing amount of information and people willing to share advice. In my opinion, you will be most able to appreciate the advice and benefit from it if you have some broad understanding of the whole topic. I would buy some books from Aussie authors and read them. It will introduce you to ideas and strategies you probably never even knew were possible. While people can tell you to do x, y and z you wont really appreciate it until you understand why. Books have a great way of setting out information and you can always go over it a few times, as well as of course share your subsequent questions to the forum. Enjoy the forum. Its a great resource for newbies and for experienced investors
Is this for investment or PPOR? If it's PPOR, you probably choose whatever location you are happy with. If it's for investment, I will probably choose locations that are undergoing gentrification. Have you got a short list of suburbs? For quality, you probably can check the history of the developer but you will probably pay a premium for the brand new ones. I don't think there are any problems with cheap properties. My cheaper ones have the same (or even better) growth compare to the more expensive ones.
Hi Linda, some good info here, but would reiterate Big Will's advice, be very wary of buying units off the plan.
Hello Linda, I think the most important thing about investing, is actually working out what is your goal? What do you want to achieve out of this property? eg; do you want a property to renovate, property to develop on or are you looking to buy and hold the property and simply rent out. Then you can break it down from there in terms of budget, risk and how much time you have to look into buying the property.
Linda 1) Do not buy new unless you are buying directly from the Developer or through a Licensed Real Estate agent and that does not mean a so called Wealth Creation Company that uses someone else license and receives a nice fat commission for selling you the property. 2) If buy an established property decide whether you want to buy it locally to you or but inter or intra state and want to do the research and inspection yourself or engage the services of a professional buyers agent. Preferably someone who has a property or two in their own portfolio. 3) Price is certainly important especially if it is your first investment property. We as a Company are not in favour of Units (unless you buy the whole block) because of the added expenses and therefore focus on freestanding homes. There are many a suburb where you can acquire a quality detached property with good growth prospects and healthy return without spending a fortune. Ascertain with your adviser your long term goals and then work backwards to decide on a price / location. Above all be wary of anyone who tells you that you have to buy brand new because of the Tax benefits in Depreciation etc. Never buy based on the so called "Tax benefits".
