How To Select the Right Property for You
“At one time in the world there were woods that no one owned”. Great! But for good or for bad, we have left that time more than a 1,000 years behind. These are very interesting times that we live in and procuring one’s own property under the Sun is a coveted dream of almost everyone of us. If you are diligent enough, you can select the right property for yourself. It is largely about doing your homework right.
Say No to speculation
Equating the property market with the speculative market may not pay rich dividends (I am not talking about a ‘flash in the pan’ windfall deal). Do not venture unless you have done your side of research.
“Guesswork or speculation” is a poor second to “facts and proven theories”. Ideally, you should look at the long-term growth trends/historical performance of your prospective property.
Keep an eye on the trend
‘Trends’ are not only for Twitter. Trends are like diamonds- Forever and for every aspect of life. Follow trends, keenly observe them and you will make a prudent choice. If you have a property in mind, try finding out which hierarchy or demography of buyers are looking at it?
Are owner-occupiers more interested in the area or are the FHBs topping the enquiries? Get in touch with an area specialist or seek aid of a buyer’s agent to learn about the anticipated future trends.
Location is of paramount importance
Times change and with them the preferences; once, there was such brouhaha about suburban properties and yet people have almost completely shifted to lifestyle spots in the inner-city areas today.
The trend can be observed for foreign investors too. For good measure, even the tourists are spending a lot more time near the CBDs, instead of the ‘sea and sand’ they fancied a few years ago.
Is the location supported by a single industry or multiple industries?
Be diligent in finding out what drives growth in your property location. Do not buy properties in areas that are supported by a single industry. Shy away even if the deal is loaded in your favour.
It is often found that areas supported by single industry-economies suffer badly once that industry undergoes a bust phase. The repercussions are heavily felt by the area’s real estate too.
The fall of mining industry and its effect on the local property market is a strong case in point.
Lesson for us- Seek property locations that are driven by various factors of growth. Albury-Wodonga is one such example.
Fancy those properties with exhibit higher capital growth
Rental yield is a luring concept but it can often turn out to be an investor’s illusion. Look for properties that provide high capital growth even if the rental return is moderate. Try creating high equities in your property. It is one sure way of leveraging capital growth.
Service of a buyer’s agent can give you the buying momentum
While these are sure-fire mantras of success, it may not be feasible for you to perform all the research yourself.
A buyer’s agent can be really helpful as he/she holds profound knowledge about your chosen area and also scours the properties for you without getting emotionally attached.
What is that one thing you never miss to look for in a prospective property?