Investment tips to help put the odds in your favour as you build your investment property portfolio.
While every investor’s situation is different and there are many different strategies you can use, these tips will help you with your property selection setting you up to outperform the market.
Areas that are being rezoned for higher density are very good choices for investment property. When an area is rezoned, it brings renewal and new demographics. This leads into the next tip.
Major Infrastructure Changes
This is one of our favourite drivers of increasing demand. Any area that is due for major infrastructure changes, such as a new train station, freeway or commercial park, is going to experience both short term and long term capital growth. We really like this combination.
High Percentage of Owner-Occupiers
A neighbourhood with a high percentage of owner-occupiers is a great place to purchase investment property for two reasons. First, there is less competition for tenants. This can allow you to charge higher rents. Second, owner-occupiers take more pride in their property than renters do, which means the quality of your neighbourhood will stay high. Also, your renters will face “peer pressure” from neighbours if they don’t maintain your property correctly. Who wants to be the worst house in the street?
Set Parameters for Yield and Capital Growth
The yield is for short term and is important for whether many can afford a property or not. Capital growth is what is going to make you a successful investor in the long run. Make sure you have goals for both; it will save you a lot of time looking at properties that won’t fit your plan.
Hire a firm such as Investors Edge to help you build your portfolio. We only handle investment property and we have a passion for helping the beginning investor become a successful investor.
Call our Perth firm on 1300 472 427 for more.