So I'm standing here directly opposite one of my investment properties and you'll see these beautiful park lands areas behind me. Now this is one of the things that I look for when searching for properties for my investment clients is recreational areas. It's one of a top few things that I look for. The other thing I look for is schools, jobs, good transport and shopping facilities. But these days, we've got quite smaller blocks, they're not the big blocks that we all know and remember when were young where we could play cricket in the backyard, so it is important to have some nice green spaces in the local area, recreational facilities and park lands like what's behind me here. So if you're looking for an investment property, make sure that that is on your list of things to look for.
Everything seems easier when we’re not the ones doing it.
Think about the time you go to an expensive restaurant. The menu arrives with a flash of elegance from the wait staff. Your order is taken and then the food arrives. You eat and drink. Then you pay the bill. The experience may have been extraordinary but there’s a little moment inside when you see the final sum and think “how much? It’s food, for goodness’ sake.”
Of course, you know that’s not fair. You know that the chef trained for years to be able to make food like that, that the kitchen staff spent a long time preparing and handling the food just right, that sourcing the products from markets and farmers is a serious job, and so on… you know that deep down but because you don’t see it – you have that moment. So sure, you might be thinking that finding investment properties is easy but here’s what it really entails:
A Choice of Market
Picking the right real estate market for an investment is important. My clients don’t expect huge instant returns because they’re realists but they do want value for their money and a good return over time. That’s why I steer clear of small boom towns and head to cities because they offer the best long-term prospects.
However, it’s not just any old property in a city that will do.
You Need to Look Deeper
To provide the highest levels of return there are dozens of factors which can influence the gains on a property (and its attractiveness to prospective tenants too).
For example, families will want properties that are near schools because their children’s education will be a priority for them. They will pay a premium for this.
Then there’s access to transport links. Sure, most Australians drive but there are times when it’s convenient to carry out some or all the journey on public transport. The daily commute for many people demands this.
Future prospects are important too. If the government’s about to build infrastructure in a neighbourhood or a new employment hub is in the works locally then there may be appreciable gains to be made in areas that were once less attractive for investors.
The list of important criteria can (and does) make a long list of research points. That’s the value add that I offer my clients. I don’t pick properties at random; I spend my life analysing the numbers and important factors that bring about return on investment for my clients.
Why do I do that? It’s simple. I don’t see my clients as numbers; I see them as people that I want to form long-lasting relationships with. The more money that I make for them, the more properties they will invest in through me. I do the hard work so that they don’t have to. Pretty much like the chef in the expensive restaurant.
It looks so easy but that doesn’t mean there’s no work put in. If you’d like to know more about the kind of research that I do on your behalf, I’d be happy to talk it through with you in person when you’re ready to start investing in property in Australia.
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