The fresh smell, the clean slate, the low maintenance, and the primal
need to be the first to mark your territory: are just some of the reasons why
buying a brand new house or unit is enticing.
However, that doesn’t mean it is a smart decision.
The truth is, there are no ifs or buts about it – established properties
make the best investments.
When it comes to property investing, you can’t be distracted by the
lure of superficial appeal.
It has to primarily be a financial decision – which means leaving your
own desires and prejudices at the door when looking at established properties.
"But new properties are so much nicer,”I hear
Nice doesn’t cut it as an investment strategy –and I’m fairly
certain that no matter what your objection is, I have an answer for them all:
are easier to rent
There’s no denying that tenants can be just as swayed by their emotions
when deciding where to live as we are as investors, deciding where to
But here are a couple of home truths you need to consider when
buying an investment property:
1.Australia in general, and capital cities in
particular, has a shortage of good rental properties in prime locations. With a
swing away from the Lego Land high-rise towers limited, renters are flocking to
established properties in droves. Other factors like location and rental costs
will continue to be major drivers of the rental market.
2.If you are thinking new properties are easier to
rent, you probably aren’t alone. Chances are if you buy a unit in a brand new
apartment complex, it will be filled with investors just like you. I prefer to
buy in predominantly owner-occupied areas because the buildings are generally
better cared for and there is less competition (and as a result, higher demand)
3.Buying an established property does not mean that
it has to stay as it is – in fact, I recommend looking for existing properties and then adding value through quality refurbishments.
RealRenta has all the tools that a property manager has, but at over ¼
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cost is less than a cup of coffee a week to manage your rental property
RealRenta also has a
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Friday, 11 June 2021