According to official data gathered in 2011, 7.9 percent of Australians have owned investment property. Are you thinking of this alternative as well? Then, you’ve come to the right place. In the case in which you anticipate that the more research you do before you purchase an investment property, the better, think again.
According to experts, over-thinking your decision can do more harm than good, prejudicing your decision. Keep on reading to find out why.
Some quick facts
- Most Australians are looking for houses that have good proximity to means of transportation, shops, or schools.
- Instead of physically driving everywhere, you can make use of a service like www.domain.com.au and check out the price estimates for properties all over Australia.
The bottom-line is that there is no magic number you should base your property research on. By taking into account the factors enumerated above, you’ll be on the right path. Did you ever consider property investment? Which strategy would you approach in your research and why?
How many properties should you inspect before buying?
It appears that there are contradicting opinions on the matter. Some experts advise Aussies to see at least 100 properties before sealing the deal – which is a lot.
As a matter of fact, he outlined that he wouldn’t choose a market that presents such an extensive variety, as he prefers a market with fewer properties. He also added that visiting 25 properties in a month’s time is recommended, as it should give one a clear idea on what the market offers, as well as the price range.
Where’s the right spot to do research?
This depends on numerous factors, including the selling price, the type of buyers that are attracted to that market, the areas that present an increased level of fluctuation – namely the streets that attract significant numbers of competing buyers. Browsing for properties for three weeks to three months is fine, but whatever surpasses six months is too much. Your priority is to find the right suburb, and then, picking out the property will be easier. As outlined by experts, it’s recommended to choose a less attractive property located in the right neighbourhood, as opposed to choosing the best property in the wrong suburb.
The next step is to mark the good and the bad areas. Consider the following aspects: primary arterial roads, industrial zones, the proximity of schools, parks, shops, and so on. Additionally, by asking a few local agents a range of questions, you could minimise the research time significantly. Which are the streets that have public housing? What do tenants and buyers typically look for? What kind of property attracts most open homes attendance?