What Is An Investment Grade Property & How Do You Spot One?
It may seem obvious, but when it comes to property investments, not all investment properties are created equal!
It’s important when you are considering investing in a property that you ensure the property you purchase is ‘investment grade’.
There are some differences when it comes to just purchasing a residential property to live in and purchasing an investment property, and that’s where our team at AllianceCorp can help.
Investment Grade Property VS Residential Property
There are a multitude of factors you’ll need to consider when purchasing an investment property, and the main thing to keep in mind is that not all properties will make a good investment. There are a number of things that you’ll need to consider when purchasing an investment grade property, that you may not even think about if you were looking to buy a home purely to live in.
Why Is An Investment Grade Property Different?
When you purchase a property purely for capital growth, you need to think about your purchase more rationally rather than letting your emotions play into your decision.
You’ll want to focus more on factors that will generate you the most revenue, like location, capital growth, rental yields and tax benefits. Unlike if you were buying a residential property to live in where other, more aesthetic factors might be more important to you like a large yard or backyard pool.
What Factors Make An Investment Grade Property?
There are many factors that make an property investment grade, these are the top factors you should keep in mind when on the hunt for your perfect investment property:
Maximising Rental Yield Potential:
- To unlock a high rental yield, it’s crucial to invest in properties that cater to tenant preferences.
- Factors like location, accessibility to public transport, proximity to schools, and nearby amenities significantly impact rental demand.
- A top priority should be acquiring a high-quality property in a desirable location, as it tends to command higher rents compared to average properties.
Capital Growth Viability:
- Historical trends indicate that property markets generally exhibit upward movement over time.
- A worthwhile investment should demonstrate positive capital growth, justifying your purchase decision.
- Consistent value appreciation over time in a property provides assurance that it will continue to appreciate in the future.
Emphasis on Quality Design and Construction:
- When delving into real estate investments, prioritise properties with superior construction and design.
- Opt for investments in well-built properties using quality materials and craftsmanship to ensure the long-term durability and value of your asset.
Instant Equity Opportunities:
- Exploring off-the-plan property purchases, especially from reputable developers or partners like us at AllianceCorp, can present an exciting opportunity to potentially access equity from the very beginning of your ownership.
Location Is Key For Investment Grade Property!
It’s no secret that property is all about location, and when you’re purchasing an investment property location is key! When you are looking for an investment property, understanding the location’s potential for capital growth is paramount.
Look for areas that have good infrastructure like schools, shopping centres and other facilities, as well as areas that are close to the CBD to garner the most capital gains over time.
Why Choose AllianceCorp?
When shopping for an investment grade property, you want to have someone in your corner that knows the ins and outs of property investment. And that’s exactly where we come in!
We have a number of services and free resources provided by our expert team that can help you on your journey to making the best investment! If you’re looking for an experienced group of professionals that can help you get on your way to building your investment property portfolio, you’ve come to the right place! Check out our masterclass or book a free consultation with one of our Senior Property Wealth Planners to uncover the investment grade property of your dreams!