Selecting an Investment Property
The 2 main aims we have when selecting investment property for our clients are Capital Growth and Affordability.
Some people will tell you to buy land or a house as this will have the best capital growth, in some cases this is true. We must, however, also consider affordability; you don't receive an income from land such as house blocks and thus in most circumstances can't claim any benefits or costs associated with holding it.
Houses are generally fair investments however will probably give you more troubles regarding maintenance; and cost you more to hold as generally the returns are nowhere near as good as a new or near new apartment.
We generally recommend apartments as they have high initial returns (rental income/cost) compared to houses and are also are easier to maintain and easier to let as there is a larger pool of tenants looking for quality new or near new apartments in the inner suburbs.
We have found that in some instances investors on an average income can buy a new apartment in a suburb like Elwood, Elsternwick or Seddon and have it cost them as little as $20 to $40 a week after their tax benefits without noticeably affecting their cash flow.
It is also important to note that you should consider your ownership options when deciding on what to buy.
Have any questions on selecting an investment property?
If you have any questions regarding selecting an investment property call Australian Property Investor now on 03 9533 2255 or email us for a FREE, No Obligation appointment.
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