What Is the Right Type of Investment Property for You?
Have you ever been at a Sunday barbecue and the conversation turns to investing in real estate? Suddenly everyone is an ‘expert’ at what makes a good investment property and how you can get rich through bricks and mortar.
Some of the expert advice can sound like this:
“Always buy a house rather than an apartment”
“Apartments are easier to rent and maintain than houses”
“Better to buy something old and renovate it rather than something new”
“Newer properties are better because you get depreciation benefits”
“Cash flow positive properties are the only way to go.”
“Capital growth from the land is what makes you rich”
“A selling agent I know told me that Suburb XYZ is the next hot spot”
“I read an article saying that State XYZ is now the place to buy”
“Never buy strata properties!”
Having bought and sold many properties for my investor clients and myself over the years, I believe there is no ‘one-size-fits’ all approach. The right investment property for each buyer depends on several factors such as:
- What other properties they have in their portfolio (if at all);
- if capital growth versus rental yield is the current priority;
- the stage of life they are in;
- their appetite for risk;
- of course, their financial situation.
My job as a specialist buyer’s agent and property advisor is to first work through the right investment strategy for each buyer. With a clear view on what we’re looking for and an agreed strategy on how we’re going to find it, less time is wasted going to home opens and inspecting options that simply won’t be suitable. The entire search process can then be more focused and puts us in a better position to find the best investment. Contact me, Yanti Sujatna, Head of Abel Property Buyers Division to find out how we can provide advice to support your property investment goals.