Whatâ€™s important in an investment property?
Pinpointing the right time to buy an investment property takes thorough research.
There are many variables to consider, such as current and forecast interest rates, local employment opportunities for tenants, and appealing amenities like supermarkets, cafes, parks and public transport.
And the opportunities can disappear quickly – once word has got out about an emerging area, you may have missed the chance of buying at an attractive price.
Pay attention to the factors which will influence an investment. It’s a good idea to start following the news: pay close attention to dynamic issues including mining and industry, international production, the position of the national economy, the state of tourism and immigration, and government moves which may influence the cost of living.
The challenge comes from knowing how to read these signs and making an educated guess about when the right time is to enter the real estate market. For example, if there is news about an upcoming housing shortage, low vacancy rates and a stable economy, it could be a good time to consider taking the plunge and investing in property.
However, it’s good to remember that investment isn’t an exact science: some people even advocate going against the tide of popular opinion. One such advocate is world-renowned investor Warren Buffett, who famously explained his strategy: “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful”.
Doing market research also assists in determining where investment opportunities can emerge. There are a number of reports released by industry analysts including CoreLogic RP Data which detail price movements in various markets, including Australia’s capital cities.
As part of your research, consult your local LJ Hooker real estate specialist to help approach your 2015 real estate needs.