Top tips for would-be investors
Getting a foot on the property ladder can be difficult at the best of times, but with uncertain global conditions it can be a challenge for even the savviest buyer.
Recognising the somewhat arduous task that investors face when buying a dwelling, Property Observer has highlighted some of the most important considerations would-be-homeowners should keep in mind when on the real estate hunt.
To maximise potential investment returns, buyers should look at properties in areas that have nearby employment opportunities.Good job prospects mean growth in an area, which will inevitably drive home values up.
Consider vacancy rates
According to buyers' agent Catherine Cashmore, while population growth means more housing demand, it does not always equate to capital growth in the long run.
For example, mining regions may experience a surge in population, however once projects expire, it is likely the area will become less populated. Instead investors should base their decisions on vacancy rates, which give a more accurate picture of a region's housing market and its long-term trends.
Snapping up property gems
The most lucrative investments are a combination of factors - buying at the right price, in the right location, at the right time.
Residex forecaster John Edwards said suburbs that are known as property hot spots are more than likely past their investment peak by the time they are published in the public domain. Good things don't last, so it's essential to keep your ear on the ground to snap up a profitable investment when it hits the market.
Having an exclusive agent
The Real Estate Institute of Victoria suggest that while it may be appealing to have two agents covering your bases, it can also work against you. Potential buyers may get confused with who is selling the property, and this may have implications down the track when commission is paid to the successful agent.
To avoid this issue and potentially save money in the process, vendors may find it more beneficial to hire just one exclusive agent for a fixed time period.