When you’re thinking about investing in
property, there are three key things to consider.
- Yourbudget– and
that will be determined by the banks
- Location–
you can’t compromise on this
- The right property in
that location
Many investors make the classic mistake
of focusing on investing in their own backyard because they feel like they can
get better results if they invest somewhere they’re familiar with.
They then tend to let their emotions get
in the way, but unfortunately, emotional investing rarely makes good financial
sense.
Just because you might have lived in an
area for years, or even your whole life, that doesn’t necessarily make it a
good idea to invest in that location.
Especially if you’re not in one of our 3
big capital cities – Sydney, Brisbane, or Melbourne – where capital growth is
likely to be higher over the long term.
But even if you do live in one of our big
capitals, it may still be worth looking interstate as rising property prices
are forcing more investors out of investment-grade locations in Melbourne and
Sydney.
To be clear…what I’m recommending is that
as investors build their property portfolios, they should not fight the big
economic and demographic trends and should only add investment-grade properties
in the 3 big capital cities in Australia to their assets.
RealRenta has all the tools that a property manager
has, but at over ¼ the cost of a property manager.
Join now and the cost is less than a cup of coffee a
week to manage your rental property
RealRenta also has a free vision, so why not check it
out
Jason Gwerder
Wednesday, 13 October 2021
