In a recent NSW Property Outlook Seminar given to Westpac employees by John Edwards, CEO of Residex, and Ben Richard, Senior Financial Planner, Westpac, top 5 tips for property investment were unveiled.
Top 5 Property Investment Tips
1. When purchasing a property, keep it affordable (i.e. within the 30th to 60th decile of property values). Any higher and the majority of incomes won’t be able to fund this debt.
2. Affordable properties will always be more desired by tenants. Generally speaking, tenants are looking for a simple place in a great location with good public transport access.
3. Avoid properties that will have significant competition as you rent or sell. Keep it simple, but unique.
4. Look forward, not to the present or recent past when assessing an area – if a newspaper says a suburb is ‘hot’, prices have already started to rise.
5. When deciding where to buy, make sure you consider total returns, not just capital growth or rental returns. Make sure you take both into account.
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