I was hoping that this thread may form a platform for tips on selecting a successful investment property. (sorry if this has been done, couldn't find it).
I can find some guidelines on savings and sensible funds to put into a renovation but I cant seem to find criteria for choosing my investment property.
Some say, town must have 7,000 persons+, must be within 20min of a train station etc. I am preparing a list of my requirements for finding an investment in a regional centre however thought others may too benefit from such ideas……
Hoping some of the more experienced and successful investors out there can share what you look for when choosing your next investment property?
Few guidelines I have when selecting a successful investment property
A) Structurally sound – Structural problems tend to cost a lot to fix and as they are often unseen can fail to add much value to the home
Something you can increase the value of – I don't want to just rely on the market to make money, if I can renovate to add value or turn it into dual occupancy that can make me more money, even if the market stands still
C) Towns with 8,000+ and a growing population – Small towns can be risky and if a tenant moves out sometimes hard to re-rent. Declining population is a red flag but not a stop sign. Look into WHY the town is declining. It might just be short term
D) Motivated Buyer – A buyer who wants/needs to sell desperately and will sell below value or give me favorable terms
E) Demand in the area – If the investment goes south I was to have a way out. If I need to sell I want to be able to sell fairly quickly, if a tenant moves out I want it rented immediately.Hope that helps, it is just a few things but it is a start to what I really hope will be a helpful thread for a lot of people.
Ryan McLean | On Property
http://onproperty.com.au
Email MeThis blog post below has some really good and no non-sense tips:
http://www.propertyportfoliospecialist.com/2010/09/investment-common-sense/
Something you can increase the value of – I don't want to just rely on the market to make money, if I can renovate to add value or turn it into dual occupancy that can make me more money, even if the market stands still
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