The thing that makes property an amazing investment choice doesn’t necessarily have anything to do with the property itself. What makes it amazing is the ability to use leverage to borrow money in order to purchase the property and benefit from gains on the full value of the property.
While we don’t prescribe to the idea that there’s a ‘right’ time to invest in property, that doesn’t mean that the property cycle doesn’t impact your ability to buy or hold a property. So, it’s important that you’re aware of what each stage of that cycle is, so you know what to expect.
Regional influences:
While you’ll have your own criteria when it comes to purchasing an investment property that helps you achieve your financial goals, these are the top 5 criteria we think all investors should consider.
When looking to purchase an investment property, we recommendation that you buy new. While there’s nothing inherently wrong with buying an existing property as an investment, a new build comes with a raft of benefits making them more cost-effective to buy and hold for the long term.
When buying an investment property – you’re generally buying to solve one of two needs – long-term capital growth, or passive income through rental yield.
While there’s no right or wrong type of property, the property’s typology can have a hand in its profitability. Typology can also influence the purchase price of the property, making some property types more accessible than others – especially for first-time investors.
Because we advocate buying new build properties, most of the houses we recommend to clients will be bought off the plans, and they’ll either be classified as a turnkey or land and build package.