What makes a good investment property?
Many factors make a
good investment property. Today, let’s focus on six main areas.
1. Property that wouldappeal to owner-occupiers.This limits potential
oversupply of rentals comparedwith other areas where most of the
residents are renters.
2. Property purchased below
intrinsic value.According to the BIS research, resales of apartments within
a three to five kilometre of centralSydney,Melbourneand
Brisbane haverealised consistently lower pricesthan established
apartment resales. Off-the-plan apartments often resell for below purchase
price.
3. Property with ahigh
land-to-asset ratio.That doesn’t necessarily mean a large block of land, but one
where the land component makes up a significant part of the asset value.
4. Property in an area that has
a long history of strong capital growthand that willcontinue to outperform the
averagesbecause of the demographics in the area including gentrifying
areas.
5. Property that has
atwist–
something unique or special, different or scarce about the property.
6. Property where you
canmanufacture capital growththrough refurbishment, renovations or
redevelopment rather than waiting for the market to do the heavy lifting. A
common example is adding a bedroom to the property, which can add more equity
and rental cash flow.
Right now, at RealRenta Join now and get 50% off the normal low price:
That’s the cost of 1 cup of coffee a week to manage your rental property
https://mailchi.mp/realrenta/50-deal-2020
RealRenta also has a free vision, so why not check it out
Jason Gwerder
Tuesday, 8 December 2020
