I have a passion for property, and have been in the property market for a little while now, however it has only been rescently that I have discovered the benefits of positive cashflow properties. I have been doing my own research, and I understand what to look for when finding a property.
What I have struggled to find info on is how to narrow down and select an area to invest in, or is this irrelevant, is it all about the deal on offer?
I’m after some advise from some of you property gurus, regarding tools/website/information you collect, to help you determine where (area wise) your next positive cash flow purchase will be?
Also I have always believed that a house and land is a better investment for growth then a townhouse/apartment.
For example I have been looking in Ballarat as a possibility for a purchase. My delemer lies with House and Land, with possible of renovation, subdivision or future development of the land. Compared with an townhouse/apartment which has a better cashflow rate, but a predicted weaker capital growth rate. Which of the 2 possibilities would you select to invest in?
Do I need to abandon this old style of thinking, as I believe capital gains still play an important part of a property selection process?
Your Help and Advise on these questions would be much appreciated.
This topic was modified 8 years, 7 months ago by Steve.
While your intention is to renovate and sell, I wouldn’t have complete disregard for capital growth, because if after your renovation it turns out that selling is not viable to due insufficient profit or lack of buyers, you’ll have to go to plan B which is to hang onto it and rent it out. You want it to be a viable plan B if it comes down to it.
As a general rule house on land trumps townhouse/apartment, but there are sometimes exception to the rule. Also if you physically cannot afford to buy a house on land then there is not really any point pondering that vs townhouse/apartment as the decision is made for you (to go for the townhouse/apartment, or save more money for the house on land.)