I am often asked “Where should I purchase an investment property for maximum profit and capital growth?” Or “what is the next Hot Spot that I should be looking to invest in?”
So where is the GOLD? What I’m talking about is the little nuggets of gold that I get as property investment strategist – the great investment property deals. So what makes a gold nugget? An investment property where you are going to see capital growth and a good rental return. People say they don’t exist, but they do and I come across the on a weekly basis.
Now everyone is an expert at finding capital growth in property. I’m sure you’ve heard the talk round the BBQ “blah blah area is so good for buying in right now or no I would not invest in blah blah, there’s no money there.” Most of the time they may have only ever brought one investment property and it’s in the same suburb as where they live and think it is a great investment. I’m not saying it’s wrong – it could be a great investment but the fact is – you need to do your research.
A key characteristics to look out for when buying an investment property is the planned infrastructure of an area. What the government, both local, state and federal is spending money on in infrastructure and the location. Things like new railway lines, road upgrades, new schools and future large land developments such as Aura on the Sunshine Coast – where it has a full town plan. These are great starting places as there are going to be many job opportunities. Jobs are probably the number one reason your future tenants are going to want to rent your property, is it close to employment? Strategies based around big infrastructure projects are usually bought and held to wait for the capital growth. Obviously we do a lot more research into the areas we advise our clients to invest in – not just the planned infrastructure.
What I look for in a good investment property is to manufacture profits or equity; we use the same principles for finding the Hot Spots – however we build a slightly different product to most. The product we usually build is a duplex or a dual occupancy property. The reason for this is when we build a duplex the sum of the two properties is worth more than a single dwelling. So once the property is strata titled we would usually have an equity up lift (or profit in other terms) immediately. This means we have made money from the word go and this allows you to “go again” by using this equity uplift to build your property portfolio. What it also does, is it gives you two rental incomes and a better return on your money. If building a dual Occupancy then it allows great servicing and cash flow leaving you with money in your pocket.
So if you want to learn how to find a gold nugget and build your property empire, give Chris a call as we all know he loves to talk anything property and is happy to share his nugget knowledge with you…. 0434 449 455 or drop us an email HERE and we’ll get back to you