I've been floating around the forum a short while now and often see the phrase "good fundamentals" thrown around a lot. However, it seems interpretation of this term varies quite wildly between investors. So my question is, what do you regard as good fundamentals? Not so much to critique your list, but more to get an idea of the signs other investors are looking out for. I'll kick off with my list (a bit long, but I'm still tweaking exactly what is important to me): spending growth (private and government) in the city/state Forecast population growth/dwelling approval ratio >2 employment growth increasing population growth An activity centre or transport connection For detached house - below market $/sqm and a house that returns unit-equivalent gross rental yields limited scope for supply of the particular dwelling type - eg. if development in a suburb focuses on townhouses, only look at detached. If development focuses on multi-resi, look at townhouses. seek yields equivalent to the next down-sized property.
Okay silly question. Whats the difference between detached and townhouses? I thought they were the same?
Good : better than average, acceptable, desired Fundamentals : the basic principles that something is based on.
Good fundamentals for IP selection - 1. Location, 2. Employment prospects, 3. Population growth 4. Amenities - transport, services, shopping, schools, medical. You could also add property type and condition, affordability, yield.
The Australian Bureau of statistics categorise three broad groups of property: houses (stand alone dwelling) semi-detached, row or terrace, townhouse (attached to or less than 500mm separation to adjoining properties) flats, units, or apartments (adjoining properties above or below) By WA planning guidelines (i'm not sure about terminology in other states, may be the same?), this could roughly be interpreted as: house grouped dwelling multi-residential
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