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Winning Investment Purchases

12 August, 2012 / Category: Blog

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Purchasing property can be wrought with great detail. The location, type of property, time of purchase, additional features can all have an impact on the value of the potential investment and its ability to yield capital growth.

As buyers advocates, we are often asked, ‘what makes a ‘successful’ investment purchase?

With so many intricate details to consider, and a variety of developments, apartments and building options, we can see why people call property experts to simplify the process!

A number of elements contribute to the success of any investment property:

The phrase ‘location, location, location’ is a cliché because it is true. It’s wise to consider whether the property is in a desirable, growing area likely to attract good tenants. It’s important to match the investment to tenants likely to rent the property. A quiet, residential area in zone one is ideal.

Be sure to familiarise yourself with the area, the demographic of potential tenants and match purchasing decisions against those factors. For example, an area with a dense population of single professionals are likely to look for properties first floor options for added security.

Size of the building
While it may seem tempting to invest in a larger building, purchasing in smaller blocks, or apartments with few bedrooms provides larger potential for capital growth. Ideally, small blocks of 6, 12, 18 and no larger, or one bedroom plus units.

Investing in small, specialised units incorporating bedsits and studios can look attractive from the outset, however are harder to rent and grow the value of the overall property. At infolio, we recommend a secure, long-term investment strategy, focussing on capital growth potential to grow the value of the investment year on year.

Outdoor area and off street parking
In highly populated and family areas, the lure of an outdoor area or balcony option is attractive to many tenants. Consider whether the investment has potential to renovate and showcase hidden gems such as a secure play area for children, garden feature and alfresco area for summer.

Off-street parking is becoming harder and harder to find, leading tenants, homebuyers and wise investors to seek developments that can provide this added feature.

Character features
It’s the small things in life that make a difference between a good and a wise investment, and the same can be said for added features within developments. Character added features, particularly in buildings and apartments built or styled in the 1930s – 1970’s area provide the dual benefit of character and additional space, particularly attractive for growing families and established professionals.

Making a winning investment can be simple, if you know where to look. We can find ‘hidden’ properties that aren’t advertised, new to the market and can negotiate the best price to ensure the future growth of your investments.

Give us a call to learn more.

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