What To Look For When Buying A Property
How do you know what to look for
when buying an investment (or any) property?
There are many variables to consider, such as current and forecast rates, local employment opportunities for tenants and appealing amenities like supermarkets, cafes, parks and public transport.
And those opportunities can disappear as quickly as they appeared – once word has got out about an emerging area, you may have already missed the chance of buying at an attractive price.
Pay attention to the factors which will influence an investment. It’s a good idea to start:
- Following the news
- Paying close attention to dynamic issues including mining and industry
- Considering the position of the national economy
- Looking at tourism in your area
- Keeping educated on government moves which may influence the cost of living
The challenge comes from knowing how to read these signs and making an educated guess about when the right time is to enter the real estate market.
For example, if there is news about an upcoming housing shortage, low vacancy rates and a stable economy, it could be a good time to consider taking the plunge and investing in property…. However, it’s good to remember that investment isn’t an exact science.
Some people even advocate going against the tide of popular opinion. One such advocate is world-renowned investor Warren Buffett, who famously explained his strategy: "we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful"
Doing market research also assists in determining where investment opportunities can emerge. There are a number of reports released by industry analysts including CoreLogic RP Data which detail price movements in various markets including Australia’s capital cities.
With interest rates at an all time low I believe now is a great time to expand your property portfolio and we have some great properties on the market with good long term tenants in place.