Thinking about property investment? Start with the ending for a clearer path.
Knowing what you want to achieve and why you are investing in property means you can choose better, tastier options that are more likely to achieve your aims.
You might have a very different reason for investing than the next person:
Buying where you eventually want to live
Buying for capital gain (long or short term)
Buying for cashflow
Helping the kids
To accumulate X properties
And probably plenty more.
Understanding what you want out of it helps you decide where to start looking for property and the type of property to buy.
For example, if you yearn to live by the seaside and you can afford to get in now it might make sense to buy (if not the exact property you wish to move to, then at least) in the town or area you wish to end up in, so you have a foot in the door should prices climb disproportionately.
For longer term capital gain you’re probably sticking to the capital cities, and if you’re looking for more speculative quick gains you’ll be trawling the investment advisors looking at hotspots and property clocks. If cashflow is crucial you might be looking at regional locations (do your research well). Or an alternative prope
rty type, say something with a granny flat for dual income. Utopia for investors is the cash flow positive property (puts money in your pocket after it covers its expenses) with legs for capital gains, which is actually an interesting proposition in this really low interest rate environment.
Whilst personally I use a buyers agent to select properties, other methods that seem to yield results are to “just add water”, based on the assumption that we’re not making any more beachfront and everyone loves the ocean; follow the big boys – so look at where the very big players are building infrastructure, is there a Woollies going in? A Westfields? A hospital or new major roads? Leverage off someone else’s research.
There are no guarantees any of it is going to pan out as planned but if you do nothing at all you’re absolutely assured of no success, don’t be overwhelmed by analysis paraysis.
Western Weekender article https://issuu.com/weekenderpenrith/docs/property19aug/26