How do you select the best locations to invest in? Our signature Five-Step Method is used to uncover the best investment locations that offer strong rental yields and good prospects for long-term capital growth.
1. Property Cycle
Understanding the property cycle gives you the advantage of knowing the optimal times and regions that favour the savvy investor.
Those in the know understand that Real Estate follows a cyclical path from boom to downturn; depending on stock availability, market demand, pricing variables, vacancy rates and more…
Australia is a large and diverse continent made up of 6 states, 2 major mainland territories, and other minor territories. Constantly evolving, each state, and each suburb, can be found at a different point in the property cycle. It’s a world of opportunity once you’re in the know.
2. Key Statistics
Understanding the key statistics of market data is critical to making smart and informed investment choices.
These include, but are not limited to, vacancy rates, historic capital growth, average days on market to sell, the number of properties selling per quarter, sales volumes and more…
Smart investors understand that key statistics are the keys to success compared to more traditional metrics such as median house prices.
3. Infrastructure
Researching current and planned infrastructure projects in an area can uncover incredible investment opportunities for those with a trained eye.
Government and private sector spending on infrastructure such as shopping centres, roads, hospitals, schools, major employment hubs, and major transport links like trains, buses and airports are powerful growth indicators.
Major infrastructure projects boost job growth and act as a marker for attracting those in search of lifestyle living over the long term.
4. Demographics
Assess the investment potential and focus on properties that best serve the local demographic.
When considering a suburb for investing, think like a professional investor who digs deep to understand the demographics of the local communities.
Review data around projected population growth, occupancy of available homes (owner-occupied vs. rented) and household incomes empowers you with an accurate suburb comparison.
5. Cashflow
Like any other business, property investment is all about the numbers. They must add up and be aligned with your investment strategy.
Understanding your cash flow position will avoid the risk of you losing money each month. Start with the projected income (weekly rent) and then estimate all of the related expenses such as council rates, water rates etc.
This will determine if your investment would be negatively or positively geared plus the potential shortfall or surplus of funds.
If you’re ready to invest but don’t know where to start, talk to us. You might know what to do but don’t have the time or want the hassle; we can help.
