Selecting the Right Property
By Greville Pabst on 23 May 2013
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Whether buying as an investor or an owner-occupier, selecting the right property is a tricky business. Here are four top tips to point you in the right direction.
1. Never speculate
When it comes to buying real estate, don’t risk everything on a guess. Base your decision on available facts. The long-term consistent performance history of a suburb and property type is the most reliable indicator of any future outcome.
2. Observe the trends
When buying a property, become familiar with the types of property and the areas that are most in demand. Identify what kind of buyer is moving into the area. Families? Singles? Couples with no kids? Why are they moving in? Speak to an area specialist about present and likely future trends.
3. Location, location, location
Location underpins the value of a property. Recent trends show that people are buying “lifestyle” when choosing their home. Proximity to schools, access to roads and transport, and the local community feel are all factors which contribute to the type of living many people are striving for.
4. Buy for capital growth
The majority of property wealth is achieved through capital growth. In the long run a property with a high capital growth profile and moderate rental return will outperform properties with initial high rental returns.
Adhering to these simple steps will benefit you in the long-term. They will assist you when deciding between an average property, and a quality real estate property which will outperform the median suburb trends.
