Purchasing your first investment property can be daunting and exciting at the same time. It is also often the most important purchase an investor will make. The property selection process will dictate whether the buyer will be able to grow their portfolio to a second, third, or fourth investment property.
The selection process is the first, and most crucial step to securing a property that will achieve a high level of capital growth and return on investment. In-depth research is imperative to gaining a compressive understanding of the property market, in order to identify out performing suburbs, and homes. The best investors spend time attending auctions, monitoring sales trends and tracking suburb growth figures to gain an insight into how much they should expect to pay for their property.
Poor property selection is one of the biggest mistakes a first time investor can make, because it sets them behind from the very beginning. Often soon-to-be investors approach us with very little knowledge of the local property market. As buyer advocates, we are able to use our knowledge and experience to select the best properties.
Now is a great time for first time investors to enter the market, as many capital cities across Australia have hit a soft patch. Sellers are having to vie for the buyers’ interest, providing buyers with the opportunity to negotiate a price that will deliver a good return on their investment, and allow them to purchase in the future. A well-researched investment property appeals to the rental market, ensuring a strong and consistent rental income for the investor. This enables them to expand their investment portfolio, or use their equity to purchase a dream home.