Property investment is all about location so when you have determined your budget, you often look for an attractive property ie. waterfront, school zones, proximity to infrastructure or but sometimes it’s all out of your price range.
Properties with good capital growth potential are often expensive especially for first-time investors so if this is your case, what should you look for instead?
The factors you have to consider when buying an investment property are price, location and the property itself. You owe 80% of the property’s performance to its location so you probably should not compromise this. Instead, you can just choose a property type in a good location you can afford.
Remember that you may be better off avoiding properties located along a main road or with their backs onto highways, ones that are too close to factories, train stations, industrial zones or airports.
If these are the only properties you can afford, you probably should just keep your money and wait until you can afford an investment grade one.
A property in a great location may be better than one with land in a secondary location. It may also be better to buy a smaller property in a high growth suburb than a bigger one in a secondary location.
You may also want to buy a rundown property in a better location and just renovate it or take advantage of the ripple effect by looking for a good property in an adjoining suburb, which will benefit from the outward ripple of increasing property prices.
It may be time-consuming to find an investment grade property as it needs plenty of planning and research. If you have a tight budget, don’t compromise the property’s specific location because this is a deal breaker.
What can you do?
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