Tips to Selecting the Right Property
Have you ever wondered what factors determine a quality real estate asset? Whether buying as an investor or an owner-occupier, selecting investment-grade property is a tricky business. Here are the three top tips to point you in the right direction.
1) Never speculate When it comes to buying real estate don’t risk everything on a guess. Base your decision to buy on the available facts including comparable historical sales history. A long-term consistent performance history is the most reliable indicator of future outcome.
2) Land Value Land size underpins the value of a property, and in some instances accounts for 70 per cent or more of the total value of a property. Before deciding to purchase, consider how the value of the physical site compares to the value of the dwelling. When assessing a property remember one simple thing; land appreciates and improvements (buildings) depreciate.
3) Buy for capital growth The majority of property wealth is achieved through capital growth. In the long run a property with a high capital growth profile and moderate rental return will outperform those properties with seemingly high returns. It is also worth noting that rental guarantees are in fact no guarantee of long term growth performance, so be wary.
Adhering to these simple steps will assist you in differentiating between an average property and a high performing investment-grade real estate asset that will bring you that step closer to securing your long-term financial goals.
WPB Property Group