As property investors we are always looking for a great buy. The right house on the perfect street with a great rental yield and excellent potential for capital growth. Well although the absolutely perfect investment property doesn’t exist, the good news is that it doesn’t have to — because there will probably always be one or two things that aren’t exactly what you want with a property, and that’s ok. The best part about doing your research is that you can get pretty dang close to a ‘best fit’ for you by looking in the right places for your investment properties, and by working out what works for you and what doesn’t.
You don’t have to say goodbye to your ‘good buy’ aspirations, and with the right research you can find excellent property choices for your investment property plan.
Plus, before we delve into this juicy stuff here, If you’re totally new to investment property research or investment property as a whole, then you will definitely benefit from having a look at our guide on getting to know property investmentas part of your educational journey, in addition to reading this piece.
So we know that there is a LOT of information out there for any potential property investors, and you can get as deep as you want with the stats and figures. Depending on your level of knowledge you may enjoy getting into the nitty-gritty of the stats, and there’s plenty of merit in immersing yourself in research and looking at data. There are some things that are better to look at than others when you’re trying to find the best investment property for you – and although the ABS and RP Data are fantastic resources it’s worth your while to take a look at indicators, as well as stats from the past.
After all, most research data tells us what’s happened, and while that can be a good indicator for the future there are also excellent resources to look at for what’ potentially going to happen in the future.
My top things to look at are:
- Population growth
- Supply of property
- Infrastructure and employment rates
- Finance trends
When you look at the prices of property the overall rise and fall is always going to be dictated by a couple of main factors:
- Supply and demand, or how many people there are, and where and how do they want to live?
- The overall wealth of our nation
You can use the aforementioned Australian Bureau of Statistics data or other statistical sources to locate the areas where you’ll find people who have a higher than average income, and who are prepared to pay a premium to live a certain way in a certain type of accommodation. From here you can then target the kinds of properties and drill down to specific areas and streets within these areas where you’ll find people wanting to live.
You can move further from here by getting to know the markets in the areas you’re targeting by looking at market trends – supply and demand, auction clearance rates and vendor asking prices etc. That way you can hone in on your best choice properties and get your ducks in a row.
The one thing you also have to do to get your head around the market is to inspect a whole heap of properties!
If you haven’t the time in your life to do this level of research then you need to surround yourself with a solid team who can work with you to build and develop a property portfolio that’s going to work for you. Professional services like a buyer’s agent or buyer’s advocate do a whole heap of the legwork for you, and we offer a full range of these services at AllianceCorp. If you’d like to get into property investment and are just too time-poor, then get in touch with us today to book your complimentary property investment consultation.