How to Know Where to Buy When Property Investing

where to buy investment

 

 

How to work out where to buy when property investing!

I’ve spent over 20 years in the property investing industry and it amazes me how many people have no idea where to buy when property investing.

The novice investor listens to the media and reads the newspaper and gets caught up in all their BS jargon about property investing. Getting on the ground floor, in the trenches, the advice is critical to your property investing success. 

WATCH OUT!!

Are there too many rental properties affecting prices in the neighborhood you are property investing in?

When property investing some investors worry whether they are buying in an area that has become saturated by rental properties and whether it might have a detrimental effect on the neighborhood and property values. A good example of this is when several major developments are happening in the same suburb at the same time.

Multiple high rises or multi-unit developments can spell danger for the novice when property investing. It could take anywhere from 12 to 24 months to soak up an oversupply of rental properties. Market forces tend to take care of this argument however it does take time.

TIP 1. If you do your market research and look at rental vacancy rates before you make a purchase you should be fine (Watch out for dodgy property managers as they may give you biased advice just to win you over).

TIP 2. Have a cash buffer just in place just in case it takes a few weeks for you to find a tenant.

If you do the last two tips I mentioned here you shouldn’t be too concerned about the issue of too many rental properties.

You will only make money property investing in blue-chip suburbs.

We all know about the importance of buying in the right location. You don’t need to be looking solely at high-income neighbourhoods. Depending on what strategy suits your financial goals, it may be easier to make money in less affluent suburbs.

I started in 2000 buying low-income areas when I was a novice and didn’t know what I was doing. Having said that all of those properties have almost tripled in value since and the good thing about that area was there were lots of renters and my places were rarely vacant.

So buying in an area with a growing income level can be equally attractive. Not only will you be able to find a giant leap in your rental yield, but the capital growth can also be pretty good as well.

The key is to follow the basics and find the right area that ticks all the boxes and the only way to do that is by thorough research, keen observation, an analytical assessment and last but not least, independent property investment advice.

Remember, you don’t need to look for what is the cheapest, but for something that is a good value.

Above all take some form of action TODAY, not tomorrow.

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  1. […] Watch the video below showing 11 shocking truths everybody should know about property investing traps that could cost you tens of … […]

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