Property – fresh buyer thinking for a new year

When it comes to buying property, your thinking and actions should be relevant to the market conditions at the time.  That means you should firstly consider one of the hardest decisions an investor or owner occupier has to make: Which is the right property?

Most experts agree there are four things you must do to help you get the best possible outcome with a property purchase.

Avoid speculation

You simply can’t risk everything on an guess when it comes to real estate. Decisions must be made on available facts i.e. the long term performance history of a suburb and property type is the most accurate guide of any future outcome.

Study the trends

Before finalising any decision to purchase, you must become familiar with the types of property and areas that are most in demand. Which buyer type is moving into the area – young families, singles, retirees? Why are they moving in? Speak to a reputable local agent who specialises in the area about current and possible future trends.

Location, location, location

Quite simply, location provides the foundation for the value of any property. More than ever before, people are buying a “lifestyle” when choosing their home, so factors like proximity to schools, access to roads and transport and the feel of the local community are all important indicators of the type of living people are striving for.

Aim for capital growth

Property wealth is achieved through capital growth. If you are an investor, always remember that in the long run a property with a higher capital growth profile and moderate rental return will outperform properties with high rental returns in the early years.

Following these simple steps will help you make the choice between an average property and a high quality property that will provide a greater capital growth over time.