The type of property and the location it is in are the most crucial aspects in any property investment. If you get one or both of these steps wrong it can lead to a poor purchase choice in a slow growing market.
Partner at Meridian Australia, Adam Duffy has put together his top 9 hacks for any property investor in selecting the right property in the right market, whether it is your first home or dream home.
Type: Ensure the type of property you are investing in matches the demographic of the suburb. You would not want to buy an apartment within a suburb predominately with families and children, with an average household size of 4+, instead a house or large townhouse will be better suited.
Quality: High quality is imperative for any investment property. It is essential to look out for well known appliance brands, stone bench tops, bathroom fixtures and carpets. Make sure to avoid light weight construction materials.
Age: If it’s an older property always factor in repairs and maintenance costs into your cashflow.
Location: Make sure the property is as close as possible to the suburbs amenities, within walking distance is ideal. You can actually test suburbs ‘walkability’ scores here. The property should also be far enough away from main roads so there is minimal road noise.
Uniqueness: You should select a property with something unique, whether it is a feature such as layout, aspect or design. This unique factor can positively set it apart from similar properties in that suburb.
Design: Ideally you want the property to be open plan, have little wasted space, sufficient bedroom sizes and living areas. These are all very important aspects that tenants look for when moving in.
Price and value: Compare the property to similar properties in the market. It is extremely important to never over-pay for your investment property. Negotiate with your mind not your heart.
Inspections: Getting a professional pest and building inspection in before property settlement is a very simple, yet important thing to tick off.
Aspect: Keep natural light in mind. The ideal aspects is North facing - which will give the most natural light throughout the course of the day. There is nothing worse than a property that has all the positives, yet is dark and gloomy.
Adam Duffy - Partner at Meridian Australia
P: (02) 9939 3249