Sue Williams writes an article for Domain where she talks about the latest Australian housing adventure. It revolves around using an old home located on a prime spot and then redeveloping it in line with the contemporary standards. What was once a much-pursued strategy of developers is now being followed by many investors and prospective homeowners. These days, they are either using the vacant piece of land right next to their modern property or they are buying an old home on a prime plot and giving it a contemporary facelift.
Archives
Houses or Apartments: Which One Makes For a Better Investment?
Ever since we were convinced about the usefulness of property as an investment, we have devoted countless hours debating which makes for a better investment: houses or apartments? Decades ago, when we were stuck with our “McMansion in the suburbia” dream, a majority of us would have voted for houses. But now that close-to-CBD life is gaining prominence and we have cleanly departed from the ‘McMansion’ era, the debate has begun to be fought more aggressively. Clearly, the battle lines have been drawn and no side is ready to believe that the other side has enough points to convince them.
Over the ambit of this article, let us get introduced to both these investment types, read about their pros and cons, take a look at questions you must ask yourself before deciding on an apartment or a house and lastly–but by no means the least–let us take up a really innovative stance (perhaps the best kept secret of real estate) and figure out which is a better deal between the two.
13 Things About Australian Investment Properties You Will Kick Yourself For Not Knowing
Property investors are often confused about the best way to select a property. The rules which apply for an owner-occupied property differ quite a bit from the investment piece. Many factors, internal and external, come into play. You have to be cautious about encroachments, title deeds, lease agreements and tenancy negotiations. At the same time, you have to keep an eye on location, infrastructure initiatives from the government, rental yield and capital growth.
Let’s figure out the 13 most crucial factors for filtering an investment property. This way, without exception, the wheat is separated from the chaff. You will also stumble upon that one little known secret of real estate investment which every investor will give their right arm to know.
10 Mistakes of Property Market Investment
Making mistakes at property market investment happens a lot more often than what you might think. You’ll hear about first-time homebuyers regretting their investment choices for various reasons.
But if you really think about it, many of these problems come from the same thing. Would-be investors simply lack the knowledge and preparation to make the right choices.
I’ve come up with 10 of the most common mistakes people make in property market investment. Try to see if you’ve experienced any of these investment faux pas.
Where To Buy Investment Property? Look For The Sweet Spot
While there are definitely a few stand-out property investment options, many properties do not quite make the cut. At best, they return poor profits when resold and at worst, you just run up losses on them. What do you think differentiates a good property from a bad one? To answer the question, “where to buy investment property?”, we should work towards finding the sweet spot of the real estate market.
It is true that each market can have its peculiar characteristics and may present a different dynamic but it is also true that as they’re lying within the same growth cycle, most of their characteristics remain the same. So if you have a great idea for locating the sweet spot of the Sydney market, it is likely to work (with certain deviations) for Melbourne, too.
Let us then search what makes for a property sweet spot and how we can figure it out. Don’t we all want higher ROI? There is also that one special characteristic of a great investment suburb you will so want to know. Read along!
12 Factors That Affect Property Prices
As investors, our greatest aim is to keep diversifying our portfolio. Diversification can help absorb losses made on a particular property better. Ideally, every seasoned investor wants to have a very high ratio of profitable properties in his/her portfolio mix. However, is it an easy goal to attain, especially when there are so many factors that can test the property market economy?
Find out some of the major factors that will affect your property investments, including one that is regularly overlooked by most.
