Property selection: Suggestions for putting into your property investment plan
I have introduced some general discussion on this topic in the past. Here I have listed some of the popular criteria, but of course you should tailor these suggestions to suit your own circumstances:
- High rental area – migrant areas?
- High opportunities for employment
- Public transport services – rail links are very popular
- High capital growth
- New or near new to maximise your tax deductions
- Here you could be looking off the plan
- Near new if you do not have quite the funds to purchase new
- Brick and tile or block as these are low maintenance
BUYING FOR CAPITAL GAIN
Given the economic times that we are experiencing, investors in property should very much be focusing on capital gain.
Why?
Well, there are many properties on the market that are at ‘a steal’, unfortunate as it is for the owner, these properties will sell well below a ‘regular market value’.
There are properties in some of the very upmarket areas that are being sold extremely cheap. Many of these property investors are business people who have suffered badly as a result of the financial crisis.
If you are in a position to buy at the top end then now would be your best time, but do your homework and check out the prices very carefully.
During the building of your property portfolio you often have to buy purely for the rental return because you cannot afford to pay a higher price. And there is absolutely nothing wrong with this. We have only suggested the alternative of buying for capital gain at the top end of the market because of the current economic climate.
Filed Under: Investment Strategies • Property Investment • Property Investment Tips
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