As an investor, it’s important you do your due diligence when conducting your property market research. The state of the market today means you cannot cut any corners when deciding on which property should be the next addition to your investment portfolio. You have to be highly selective to ensure your investment decisions pay off in both the short and long term.
While all of this initial homework may seem like a full-time job, the good news is that Property Club is here to help. Our Australian-wide pool of resources and investment experts can help you narrow down exactly what you should be looking for in your property market research. And today, we are going to share that information with you.
Capital Growth In short, capital growth is how much a property increases in value over time and should be one of the key factors you take into consideration when investing. As a Property Club member, you will have access to the tools and resources you need to predict the growth trends of different suburbs. You can also look at the median sale price for suburbs over the past few years to see whether or not there has been growth in that area leading up to the time of your potential purchase.
Rental Yield Rental yield is an estimate of how profitable a property may be based on the cost of owning that property subtracted from the expected rental income. You can calculate this by finding information on the median rental price of the suburb you are looking to invest in, and then comparing that against your predicted weekly costs.
The costs may include:
If, after undertaking this property market research, you discover that your rental yield will be positive, then that property may be a worthy investment venture.
How Old is the Property? The age of the property should be at the front of your mind when deciding on your investment path. As a general rule, newer properties are a more attractive option for investors. While they may cost more than an older property, their capital growth is typically stronger and you will be saving money in the long term due to their reduced maintenance costs.
Older properties will naturally require more maintenance and repair work as their facilities begin to deteriorate. Depending on the age and state of a property, these costs can be frequent and expensive and before you know it, the profitability of that investment will go into the negative. Unless you have carefully budgeted around paying such costs, you should target your research towards newer properties.
The Location of the Property When looking for the ideal location for an investment property, you want to look at it from the tenant’s point of view. What benefits are they seeking out in a place to live? Is it somewhere close to employment and/or education opportunities? Do they want to live somewhere that’s constantly buzzing with activity, or would they prefer a quiet suburb?
While the answers to these questions may vary, staples such as proximity to public transport, shops, and jobs should always be at the top of your list when choosing a location to invest. You can also do research into any major infrastructure projects that are planned for that area, as those will help increase the value of that suburb over time.
Property Club Helps with Your Property Market Research Property Club is here to help you conduct all the property market research you need to make a smart investment decision. Become a member today by contacting us at firstname.lastname@example.org.
Making mistakes is par for the course with property investment for beginners. While…
Do you want to improve your rental returns over a long period of time? Properties, unlike…
The Adelaide property market is ripe with opportunities for investors to leverage their…
Our mission is to help the average Australian learn the property market dynamics and discover the amazing opportunities that exist in real estate.