By Nicola McDougall and Kate Hill, authors of The Female Investor
Do you want to understand how the experts select the best property investment locations? Well, here are five handy hints courtesy of the authors of The Female Investor!
- The area and suburb matter
You must do complete and total due diligence!
Don’t just buy somewhere “you know” or where your friend or family member might be buying.
This can be one of the most dangerous things you can do.
Forge your own path and find the best state, area, street for YOU!
It’s NOT one size fits all.
Check out our 5 suburb location metrics: Future housing demand, vacancy rates, amenities, transport and renter ratio.
2. Neighbourhood know-hows
Learn everything you can about property in your chosen neighbourhood.
- Is it on a busy road for the area?
- Is it close to a bus route?
- What is the slope of the street and land?
- Is the property on the high or the low side of the street?
- What about on-street parking?
- What is the view from the street?
- How close it is to powerlines?
- Is it in a flood or bushfire zone?
- Are there any other warty bits?
3. Who are you buying the property for?
To maximise your return on investment and minimise risk, your property must remain in high demand.
- Consider who you’re buying for and why this matters when selecting a dwelling.
- Know who’s going to rent your property.
- Understand who is likely to buy it when you sell it in many years to come.
- You must buy a property that is in the most demand now and in will remain so in the future.
- You’re NOT buying for you!
4. Local property types pros and cons
Be aware of the differences between established properties in established areas and brand new property in brand new areas.
This can be detached houses or units.
There are many pros and cons that will have a huge impact on your return on investment, cash flow and long terms capital growth prospects.
5. Some property specifics
Check and understand all the following.
- What is the property built from?
- What is the land size?
- Are there any retaining walls?
- Are there any zero boundary walls ?
- What is the property’s aspect or orientation on the street?
- What type of title it is?
- What is the overall condition of the property?
- What is the floor plan like?
- What are the property’s facilities?
- What are its fixtures and fittings?
- What is the outdoors like?
- Are there any additions?
- Are there building or pest problems?
- Are there any features that are not part of the sale?
- If it’s a unit, what is the size of the complex?
- What is the pet policy?
- What are the unit facilities?
- What is the block like?
- How does it compare with the suburb average and what local residents want in a home (regardless of whether they are buyers or tenants)?
Make sure that it ticks enough boxes for that location specifically!
Read the full low-down on each point in our book.
