Category Archives: Places To Invest

Darwin: A Property Investors Paradise??

Darwin:  A Property Investors Paradise?

Over the past ten years, Darwin property has certainly lived up to its name “Life at the top”. The market has been top of the class, leaving all capital cities in terms of capital growth and rental yields and offering excellent returns for investors.

Darwin is a perfect example of the investment property opportunities that exit outside major cities like Sydney, Melbourne, Brisbane and Perth.

For those in our community who invested when Darwin was first picked as an investment hot spot, the capital gains and rental returns have been exceptional.

I have sourced a comprehensive 20 page report on the statistics of not just Darwin, but also a look at the other States of Australia too.  The information is prepared by reputable experts including Herron Todd White and CommSec.

To download your copy here <Click Here>

If you like what you read and would like to see the locations revealed of ideal investment properties in Darwin  <Click Here>

Here’s to your success!

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The Most Asked Question: Where To Buy Property?

where to buy property

Where to Buy Property????

Of all the people buying property in Australia at the moment, one in four buyers are looking for investment properties.* Each and every one of them will ask the same priority question – where to buy?????

[box]You’ve heard it said before – “location, location, location”![/box] This old saying is especially true when it comes to buying investment property. If your investment strategy is one of buy and hold in order to achieve capital growth, then your property must be in a location where there is high demand. Demand is directly related to location. So to maximize your profits from property you must buy the best property you can afford in the best possible location.

Here are the steps to follow when choosing a  location to buy property:

Step 1
Learn all you can about the area your looking at. Getting a good sense for what is going on in the area is vital. Get into conversations within the community. Chatting to people like the local corner store, newsagency, local coffee shops will give you loads of ‘insider’ information that can be invaluable. Stop by and spend time with local real estate agents, look through some other home opens and really immerse yourself in understanding all you can about the area.

Use the internet to add to your collection of knowledge of the area.
Sites like house.ksou.cn and onthehouse.com.au can help you to find the price of properties after they have been sold which is often useful.

Step 2
Look for the ‘ripple’ effect. A ‘ripple’ is the area that is next affected by something else. For example, if you take a beach area that is too expensive to buy into, the ripple effect will be the next suburb out.
Inner city buying has always held good returns for investors and quickly becomes unaffordable. On a map, draw a circle that indicates a 5km radius from the city centre, then focus your attention to the next ‘ripple’. That is, the next 10km out. This will still be a good location to identify potentially great deals.
If dwellers can’t have the ‘cherry on top’, then they will always want the next best thing. And that next best thing is often found in the ‘ripple’ area.

Step 3
Look for well established suburbs. These areas have been lived in for a long time and new pieces of land are extremely hard to find, if not impossible. Land sizes are often bigger and have more potential for development. Facilities and infrastructure are all in place and these suburbs are generally highly sought after as places live. This demand will continue to force pricing upwards.

Step 4
You’ve got to buy a property that is close to facilities and infrastructure. When we bought our unit in Churchlands, Perth these were some of the benefits:

  • 200m from a popular small supermarket, newsagency, postoffice, chemist and takeaway food facility. unit churchlands perth
  • 2 main shopping centres – 1 is 2km distance and 1 is 8km distance
  • Bus route right outside the front door to universities, beaches and city
  • Coffee shops across the road
  • 6 mins drive to the City Centre
  • Primary and Highschool within 5 mins drive
  • Two quality beaches within 6 mins drive
  • Local parkland and walking trails 100m away.

These are the exact facilities and infrastructure that buyers and tenants will be looking for. You want to be able to mark off all of these items against any property you are looking to buy.

Step 5
Consider suburbs that are in your price range. Using the ‘ripple’ effect, you may need to go just outside of a hot spot in order to find properties within your budget. Research street by street because while most of a suburb may be out of your reach, there can always be hidden gems to be found if you look closely enough.

Step 6
Look at suburbs that are going through a rebirth. Strongly consider areas that have older buildings that you notice are starting to be replaced with newer ones, or redevelopment. Use data from sources such as RPData, Suburb Reports: Movers and Faders and the local Council to gain an idea of the demographics of an area and see if you can buy a property that is suitable to renovate to the newer demographics of an area.

Step 7
Councils don’t plan on spending money for roads, rail, sporting complexes or other upgrades if they don’t see the demand for it. Make the local Town Planner your best friend! The local planner will share with you what new infrastructure is planned and this will give you an idea of how quickly the capital growth of an area will happen.

Step 8
Look for where big companies are spending their money. Companies like Dome, supermarket chains, Bunnings, McDonalds and others will only set up shop in areas of high growth.

First the suburb – then the street!
Once you’ve nailed your ideal suburb, then drill down to find great streets. Every suburb will have it’s high and low end areas. Go through the same type of considerations mentioned above to help you decide on an ideal street such as your price range and meeting market demand in relation to the demographics.
Talk, look and most of all listen to what locals have to tell you.

Having struck up a good relationship with local real estate agents, you will often find they will alert you to a good deal even before it gets to the market. Either way, once you reach this stage you’re ready to take the next leap and buy a property.

Your journey has begun – and after this one, I hope there will be many more icon_smile

If you’re still wondering if investing in property is even a good idea at all, you may want to go back and read this article: http://propertyinvestingsupport.com/why-invest-in-property/

* Australia’s largest mortgage broker, AFG

Here’s to your success!

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The Best Place To Buy Investment Property – A Trip To The Coffee Shop Confirms It!

coffee_artI’d love for you to join me for my cup of coffee and I’ll share how to locate the best place to buy investment property.

I’m not going to give you a long formal list of ‘must haves’. I’ll give that to you in another post. Instead, these are my recent thoughts I had over a cup of coffee the other morning icon_smile

We spent the weekend in the city visiting our 7 week old grandson. We don’t like too much time passing by without a visit, so trips to the city these days are frequent. Apart from spending time with the family, the change of scenery, coffee shops and restaurants are always nice. (I’m a big fan of coffee shops and eating out!)

Our son and his family rent one of our properties from us. It’s a 3×2 very spacious apartment we bought in 2004 for $265,000 and is now valued in the high $500,000’s. This is where we often stay for our city visits.townhouse in the best place to buy investment property

It’s just across the road from a gorgeous parkland area called Herdsman Lake. The Lake has great walking tracks all around it. You may not know, but I love to get out most mornings for a run or cycle and when we’re away from home for the weekend it’s no different. These tracks around the lake are so close and just perfect for a run or walk.

I’d had a tip recently about a great little coffee shop called The Ingredient Tree that was only a few minutes off the walk tracks. So on Sunday Murray and I took off for our run with the intention of taking a little detour at the end of our run to stop in there for a morning coffee.

We weren’t disappointed and I couldn’t believe I had not come across this little gem before. The coffee and atmosphere was great. While we were sipping our hot coffee and hot chocolate, what struck me was how busy this little place was, even though it was not on any major traffic strip.

Then it dawned on me – this little café might have been tucked away from the main stream of traffic, but it was in fact, located right smack bang in the middle of several blocks of high rise apartments that would be home to thousands of potential customers all in one spot.

This is an example of a few of the ideal facilities that are attractive to renters when you are considering the location of an investment property. The types of nearby facilities renters want when they are considering a property to rent are parks, shops, café’s, transport stations, bus services, schools and hospitals.

Too often buyers will purchase a property they like, fall in love with, can afford, but is not in a high density population area, nor very close to any or many of these types of facilities.

The Ingredient TreeThe Ingredient Tree made a smart move in setting up right in the middle of thousands of potential customers. You need to be just as smart and make your investment property purchase right in the middle of where your potential tenants or buyers are too!

This is why I prefer to purchase within a reasonable distance of a major CBD. Good deals can be found in regional areas, although generally capital growth will be slower and rental demand less.

The “West Australian” reported on June 22, that properties available for rent in the Perth area rose from just over 4,000 this time last year, to over 5,700 this year. This means the more attractive the area and the more facilities that surround an area you have your eye on, are all great indicators to start with when you’re looking for the best place to buy investment property!

The way I turn my ‘coffee shop’ thoughts into proven research is to open up my Investar program so I know I’m getting location selections right for the best place to buy investment property. Try it out for yourself and see if it helps (I’m sure it will!). Enjoy!

5 Top Suburbs Reports - FREE

Here’s to your success (and the next cup of coffee!)

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Investing In Property: Is It A Good Time To Invest In Property Today?

If you’re considering investing in property, “Is it a good time to invest in property today?” is a great question to ask.

Investing In Property: Is It A Good Time To Invest In Property Today?

Potential investors will often be thrown off track with reports they hear in the media about interest rates that might skyrocket, or that in 2 years time housing  prices will hit rock bottom, or  there will be a better opportunity to invest in property around the corner.   Let’s face it, the media loves (and needs) a good story!

Now don’t get me wrong – it’s a wise thing to keep your eyes and ears open as to what is going on in the economy.  But it’s more important is to use strong statistical data and research tools to find out for yourself what is going on, or is likely to happen.

Some of the key factors to look at, analyse and understand when investing in property are:

1.   What industry is going on in the area? Be sure to even delve into the management strength of large companies. You need to be sure there is employment prospects long term in any area you might want to place your investment dollars.

2.   Calculate your borrowings using a strong buffer for interest rates. Do your affordability figures based on todays interest rate, and also on a higher rate in case there is a rise.  Be sure you can afford to hold the property under both situations.

Below is an example calculation of the weekly holding cost of a property.  In other words – exactly how much you, as an investor, would have to find each week to keep this property.  It has taken into account fees such as stamp duty and settlement, ongoing property management fees, interest due, rent received etc.

Investing In Property: Costs to keep an investment propertyYou MUST know your numbers!

3.   Investing in property that you buy under market value will be a huge advantage. There is a saying that goes something like this “It’s not what you sell a property for but rather what you bought it for that determines your profit.”  Using a buyers agent or the power of group buying can pay off here.

4.   Understand the demographics of the area and what type of dwelling is ideal for prospective tenants or development.  Where are the main roads, any new council approvals in the system, new schools or shopping centres being developed?

So now, back to the question: Is it a good time to invest in property today?

Once you’ve considered these important indicators above as a starting point, you should have a much clearer pathway to being able to come up with your own answer.

Investing in Property With Your Head and Not Your Heart

Subscriptions to high quality magazines and data research such as RP Data are great places to begin doing your own research and obtaining this kind of information when you start looking for an area that will meet your investment needs. I suggest starting a spreadsheet to record all the information for different areas you  are considering.  After a while, you’ll start to see patterns emerging as to where high growth rates are, fast selling suburbs etc and before long, the information you have gathered will start to ‘speak back to you’.

Yes, this does seem like a lot of work.  But after all, your money is valuable (or should be!) and you want to invest it wisely.  Using statistics and numbers to make your decisions also takes the emotion out of your investing – making decisions with your head and not your heart.

If all of this seems too overwhelming for you to do on your own, another good idea is to associate with other people who have already had years experience investing in property.  Being part of a support community (like this blog) or mentoring group can  help put aside the nerves and fears that can be associated with making that investment decision.

Investing in property is about two things – education and action.

Do you remember when GST was first introduced?  People still invested in property and have made good money.  Do you remember the first stock market crash?  People still invested then in property and have made good money.  It was not the timing  their investment was made, but rather the decision around what, where and how much the investment was for. I started my investment journey when interest rates were up to 18% and was still investing in property through the stock market crash – yet I have never looked back!
There are always  going to be moving market indicators no matter when you decide to commence your investment journey.  You can use these moving indicators as an excuse to stay in your comfort zone and do nothing.  But I can assure you – sitting, wishing and waiting will not make you any money.  Action and implementation will!

Considering investing in property? Is it a good time to invest in property today?”    In my opinion…… if the numbers and statistics add up (as far as affordability,  holding costs, location, demographics etc), then the sooner you get on the gravy train, the sooner you’ll reap the rewards.

Here’s to your success!

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How to Choose An Investment Property?

residential propertyWhat sort of residential property should you buy when you want to consider property investing?

Not only should you consider the attributes of the property, but you must also consider your own financial personality.  When it comes to choosing an investment property, no two people are alike.  What’s perfect for you may not be perfect for someone else.  Your comfort level is important, and you should also consider how involved you want to be with the property.

Here are some of the questions you should ask yourself so that you understand your own profile as a property investor a little better.

  • Do you want to be involved with a body corporate? (Units and townhouses usually operate under a body corporate.)
  • How often do you want to be concerned with painting? (Timber properties need to be painted every few years.)
  • Do you enjoy organising tradesmen? (Newer properties require fewer repairs than older properties.)

There is no single type of investment property that is substantially better than others.  The economic performance of a low-set brick property in the outer suburbs may match that of an townhouse in the inner city. While some properties will cost you more along the way for better gains at the end, others cost very little along the way, for lower end gains.

Below is a list of property attributes to be considered.  Not all of these attributes will be found in any one property and sometimes it may be a case of trading off better attributes for the price.

  • Location
  • Price
  • Physical Attributes (Construction style, material, condition, size, car space etc)

I have chosen to have a selection of residential property types in my personal portfolio including townhouses, apartments and land and house packages.

WHAT WOULD YOUR IDEAL INVESTMENT PROPERTY PORTFOLIO LOOK LIKE?  LEAVE YOUR COMMENTS BELOW….