Where To Buy An Investment Property
Let’s talk location. Where should you buy your investment properties?
It’s all about that supply and demand – we want a good level of demand and a limited amount of supply to ensure that our property is going to make money in the near future. In other words, we want to buy where it’s about to boom!
I’ve found that there are four factors which contribute to this supply and demand to make a location ready for a boom.
Lack of Land
Limited land supply within the area where people want to live is going to put upward pressure on prices of the properties that exist in that area.
Lack of Labour
A lack of skilled labour will make it harder to create more supply in those areas, and also make it more expensive to bring the labour in, also pushing prices up.
Increase in Population
More people means more demand for the same amount of space, once again, pushing prices up.
Increase in Wages
An increase in the average wage in an area will mean that people can afford to pay more, and if supply is also limited, this will put prices up.
My team and I always keep an eye out for these four factors. In fact, we have a very detailed research process that we use, including military intelligence gathering techniques and analysis… it all comes together to inform us and our clients on the best places to invest.
We do this because we know how important it is. If you want to grow your portfolio quickly, you need to get the location right, and make sure you buy where it’s booming. This ensures you get good capital growth and available equity to get into your next property sooner.
Daimien Patterson is the CEO of Integrity Investment Properties, a property investment company based in Australia. He regularly produces books, blogs, and videos on the topic of property investing. Head to [integrityinvestmentproperties.com.au] for your free copy of Daimien’s book, Safe as Houses.