You cannot build a strong Property Portfolio if you don’t know where to start!
Here are the 6 Steps to Success…
1) Right stage of the property cycle
Property prices don’t increase in a straight line. You’ve got to know the right time to enter the market. This is when prices are low but there’s strong indicators of an upcoming boom. You can then sit back and ride the wave to the top.
2) The right state
The Australian housing market is not one big market. You need to look on a smaller scale at the local city level and see where that market is in the property cycle.
We only invest in areas where economic growth and wage growth will continually occur.
3) The right suburb
Then within that city, we look for the right suburb – one with a long history of strong capital growth outperforming the averages. And most importantly, one with strong indicators of future growth.
We have found some suburbs have 50-100% more capital growth than others over a 10-year period and obviously, these are the suburbs we target. They have existing amenities which make it a really desirable place to live and locals will be prepared to pay a premium.
Next, we check the supply and demand ratio in the area to make sure there is not likely to be a short-term oversupply of properties on the market. In fact, what we’re looking for is a lack of supply.
4) The right location
Once our research has shown us the suburb to explore, we look for the right location within it.
Some streets will always outperform others and in those streets, some properties will always be more desirable than others and will outperform by increasing in value.
Think about the suburb where you live – there would be areas you would happily live in and areas you would avoid, like on main roads or too close to shops, train lines, schools or commercial areas.
5) The right property
Once we find the right locations that work, we then find the right property within that location. One that is going to have maximum appeal to the largest group of people. It’s also about checking the inclusions in the property – it’s got to have everything a tenant would want.
6) The right price
We are not looking for a ‘cheap’ property (there will always be cheap properties around in secondary locations). We are looking for the right property at a good price. The right property is the one that will consistently perform year after year.
The price has to be right but it is not the most important factor when selecting an investment grade asset
Are you ready to invest in property and change your Financial Future?
Join us for our next Webinar and get to spend time with our Property Expert
You will never look back!
