Property investment continues to be a great way to build long term wealth with the demand for rental properties and therefore rental prices continuing to increase.
If you are just getting started you may have discovered that there is a bewildering number of possibilities on how to find investment properties.
The first quarter of 2021 has already seen strong growth in the housing market.
The “experts” are currently calling SA, especially Adelaide “a seller’s market” due to the high demand and low supply, and for this reason more people are also becoming more interested in learning the secrets of how to find a good investment property.
3 Factors Driving Up Property Prices
Before getting into our checklist of how to find an investment property, let’s take a look at several factors driving up prices currently.
1. According to housing market speculators & experts, considerable government stimulus, tumbling interest rates and mortgage holidays have contributed to the recent price growth.
2. At the same time, First Home Buyers have jumped into the property market using savings, incentives and low mortgage rates to secure their first homes.
3. Overall high demand and low supply is another contributing factor, as strong property investment demand is seen not just from locals, but also ex-pats returning to SA.
How To Find A Good Investment Property In 7 Steps
1. Think Long Term
- If you are a property investor, it is advisable to identify your end goal.
- Unlike a first home buyer, for you this is a business decision and you need to make it work for you.
- Do not get distracted with hot spots or the latest investment fads but move ahead with a plan.
2. Strategise
Think about factors like:
- High land to asset ratio
- Avoid off-the-plan properties sitting at a premium price
- Look for options that have some uniqueness to offer
3. Choosing The Right Type Of Property
The location of your property should be considered before making your decision.
For instance, compared to apartments, houses can offer robust capital growth but depending on the location, this may not be the case.
Also, keep in mind that nowadays, people are more conscious about how they can easily trade-off backyards with balconies and courtyards.
4. Deciding Between Something Old Or New
Again, as a property investor, you need to determine your long-term investment goals.
Long-standing profit should be the primary focus while looking for an investment property that has the potential to boost your rental income.
You also want to create some capital growth.
5. Location Matters
Now, that we live in the new “Covid Normal” world, access to basic amenities should not be more than 30 minutes away whether travelling by bike, car or public transport.
6. The Right Time To Invest
If you are contemplating when is the right time to invest in property, the answer is simple – when you are financially ready to do so.
You can get assistance from seasoned professionals and experts to determine projected property market growth.
And what the speculative Return On Investment in the next five years or so may be.
7. Ask For Help
Success in real estate is more like a team sport than a solo performance.
With so much to do in terms of finding the right property, getting a loan approved, managing the property and much more.
You will need assistance from finance brokers, solicitors, qualified accountants, and support from an independent property strategist who can help you set up for a win.
If you would like to meet our winning team and discuss a customised solution to suite your specific requirements, contact us, we’re here to help you.
