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News Choosing the right investment property

Choosing the right investment property

Real estate & property news
29 June 2024
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One of the most popular questions buyers ask us when they first start looking for a property, particularly those who are looking for an investment that they plan to rent out, is what type of property is a better investment…should they buy a house, a townhouse, a unit or an apartment?

One of the reasons that answering this question is so difficult at times is that it really does depend on the individual buyer. Yes, you can research all sorts of statistics into what type of property performs better, both from a rental return perspective and a capital growth perspective. But that doesn’t mean it’s the right type of property for YOU.

Choosing the right investment property for you depends very much on your specific circumstances and goals. Are you investing with the primary aim of generating a regular income, or more focused on long term capital growth? Is there a possibility you may want to redevelop your investment down the track to create a different form of investment? How much time will you have to tackle property maintenance issues rather than paying someone else to deal with them? How long are you planning to hold the investment? These are just some of the questions you will want to have answers to before you start attending Open Houses.

The fact is that there are some advisors who will tell you that a house is a better investment option because of the land content in the property. However, this advice doesn’t apply to every person or situation.

For example, some investors will say that buying a unit means on average that your initial purchase price will be lower, your rental yield is likely to be higher in most cases, and most of your upkeep commitments will be dealt with by the Owner’s Corporation rather than needing individual attention. Of course, the other side of the equation could be higher outgoings depending on your Owner’s Corporation and shared amenities, and potentially lower capital growth.

You can see how the equation gets more complicated the closer you look, right?

Perhaps the best advice I can give that applies to everyone is to start with a clear understanding of what you want to achieve, both immediately and further down the track. It is only once you have a clear vision of the end that you will know how to start.

Of course, if you need any individual assistance or advice, whether that means finding the right property to invest in or getting the best performance from it once you have the keys, feel free to give our experienced team at Barry Plant Thomastown a call this week on 466 3233.

Regards,

Con Constantinou

Barry Plant Thomastown

Real estate & property news
29 June 2024
Save Article

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