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Tips for identifying a profitable property investment

Tips for identifying a profitable property investment Making educated descions Arguably the hardest aspect when it comes to investing in anything, is knowing where to put your money A FEW QUICK TIPS THINK LONG TERM: This may be a blatantly obvious factor, but there are many aspects of propérty that can influence a long term'investment. Be sure to not over look simple elements. STEP 1 IDENTIFY SURROUNDING AMENITIES: Amenities include places like parks, local pools & schools. Consider not only what impact these places have on the community, but also how well they are doing, and their plans for the future. STEP 2 FUTURE DEVELOPMENTS: As mentioned above, having an understanding on how local amenities are performing is great information to hold. If schools are looking to expand in coming years, then that would only push the value of surrounding property up! STEP 3 CONCLUSION: Take your time to get educated on the suburb you are buying into. A little bit of research can go a long way. SUPPLY AND DEMAND Paying market value BEWARE OF BARGAINS: Often, paying market value for a blue chip home, in an in demand area, is a better investment than trying to buy cheaply. Buying a property at a bargain price may just mean you've bought a second-class asset. If you buy a property for less than others in the area are worth, that doesn't mean you've secured a bargain. For example, if other properties in the area have sold for around $450,000, but you buy one for $400,000, there could be underlying factors that have driven the price down. $450000 $400000 Be sure to consider all influences before diving into a bargain. If the area you are looking to purchase in is a growing suburb and increasingly in demand, it will mean that more and more higher density properties emerge, thus forcing land value up. THINK DENSITY Keep land value in mind, as the property you buy may be situated on what will be a gold mine in 10 years, in terms of ROI. WHAT TO BUY? HOUSES APARTMENTS Median price increase over 10 years Median price increase over 10 years 61.8% 57.3% Median rental yields Median rental yields 4.2% 4.9% In the end, it really comes down to personal choice and your reason for buying. One thing to remember though, it's demand which ultimately drives growth, not the property type. Therefore, the only way to establish whether to buy an apartment or a house is to discover what kind of people live in the area, and their preferred choice of property type. WHAT TO BUY? Cost of repairs HERE ARE A FEW THINGS TO KEEP YOUR EYE ON WHEN PROPERTY HUNTING. 1 3 4 RESTUMPING ROOFS WIRING PLUMBING Get a proper inspection done of the sub-floor area. You would be amazed at the lengths people go to in order to hide faults. Such as props sitting on bricks and scrap wood wedges. Again get an inspection. Roofs can cost tens of thousands of dollars to fix, and leaks in a roof also can damage interiors and wiring House wiring needs to be done by a professional electrician. Some homeowners have been know to do it themselves in order to cut costs, which is illegal. Test taps for water pressure. Faulty pipes not only are costly to repair, but can also attract termites, which will end up being more unwanted expense. We hope you found these property investment tips useful. Piktochart make information beautiful

Tips for identifying a profitable property investment

shared by Century-21-Australia on Jul 18
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A few quick tips on some factors you need to consider when you are looking to identify a profitable property investment.

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