If you are looking at getting into property investment as a way to build wealth, but are not sure where to start it’s important to do your research and educate yourself on the principles of becoming a successful property investor.
It can be difficult to identify the high return opportunities and to invest with your head and not your heart.
McCarthy Group has helped to make this process hassle-free for thousands of Australians, and I’d like to share with you a couple of rules that we apply when we look for investment properties for our clients.
Select High Growth Areas
You may feel more comfortable investing in your own backyard, but in truth the best investments are usually in other locations. Investing in areas that are primed for strong growth enables you to benefit from steady increases in capital values and rentals over time. Key indicators of growth locations include having a broad economic base, a diverse source of jobs, increasing immigration, increasing rents and a shortfall in rental properties. McCarthy Group has consistently picked growth locations over the past 14 years and in our opinion, Brisbane is currently looking like the hot spot for property investors. With a growing source of jobs in diverse industries, a robust economy that is benefiting from the mining boom and a lot of great places to spend leisure time, it is the kind of city where people naturally want to live.
Select New Properties
It’s been proven that tenants prefer clean, fresh and modern homes and why wouldn’t they? New properties mean everything works and there’s minimal hassle or downtime. As an investor, new properties give you tremendous tax benefits, such as the 2.5% per annum depreciation allowance, which effectively recovers the full cost of the new home over 40 years.
There are two elements to consider when you think about affordability. Firstly it needs to be affordable for you to hold onto, particularly in the first few years. Secondly is the property affordable for the mainstream rental market. Affordable rental properties are seldom vacant, particularly if they are new and in high growth areas.
But most of all, before even getting into property investing you need to have a plan. The best investments are always well planned, and take advantage of the market cycles. You need to have a clear picture of your financial position and what your goals are before you can set out to achieve them.
To help you with the process we have expert staff who are always on hand to assist you with your investment property decisions.