There is a wide range of information available to homebuyers and investors, but it can be overwhelming if you don’t know where to start
Whether you are purchasing your first home or starting an investment portfolio, the traditional methods of research such as websites, magazines, news reports and company announcements are always a good place to start.
However, the research you need to undertake will vary, depending on your end goal.
If you are looking for your primary place of residence, factors such as proximity to family and friends, layout and design and overall feel will have a major effect on the area and property you choose.
On the other hand, if you are purchasing an investment property, your search should focus less on personal preferences and more on features that will maximise the return for your investment.
You need to consider the rental yield you will receive by basing your research on how much this suburb has risen in value historically, whether there is the potential to add value through a renovation, and whether the property meets the requirements of potential tenants.
There are three key factors that you should consider when starting your property investment research.
In particular, you want to consider the proximity of your property to public transport, schools and employment opportunities. Areas in close proximity to the CBD in major cities will have a real advantage when it comes to these. However, if you want to enter these areas today, you will need to pay a premium and depending on your circumstances, this may not be possible.
If the well-developed areas near major cities are out of your price range, you will need to make special consideration for current and future infrastructure that may make an outer ring suburb more accessible in the future. If you can pick these suburbs early, you should be able to snag a bargain and see significant increases in value as the infrastructure develops.
There are two key considerations to be made here. Firstly, you need to sit down and work out how much you can afford to spend on your investment property, taking into account stamp duty, legal fees and property management fees. Secondly, you will need to consider the demographics of the area you are purchasing in and decide whether your potential tenants would be able to afford the rent you hope to achieve.
There are a number of resources available to property investors and homebuyers looking to enter the property market, so don’t limit yourself to online resources. An experienced team of experts will be worth their weight in gold throughout your property investment journey.
If you would like more information on how to begin you research, contact us today.