Purchases

Investing – Strategic, Affordable, and Unemotional.

By in Purchases

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At PROPERTYOLOGY, we are currently assisting clients purchase in seven strategically selected locations across four states.  In two of these locations we are purchasing properties between $200,000 and $220,000.  With affordability being the number one driver of property markets across Australia over the last 15 years, we do not recommend that any of our clients spend more than $450,000 anywhere on an investment property – even if that’s what the property is actually worth.  We believe there are much better ways to utilise your investment capital and investment cash flow than tying up $600,000, $700,000 or even more, in one asset.

It’s our belief that investing in property is about building wealth, yet also minimising risks along the way. Ultimately, an investment property is a financial instrument, similar to shares. And as such the considerations and decision to purchase, should be based in fact and results driven.

Unlike the purchase of a family home, which is filled with many emotion based decisions. Do you like the suburb? Is it close to your work, or school? Is it close to family? Is the layout and design what you want? These emotional considerations are very important when choosing the family home, however they do not serve us well when selecting an investment property. Is close to where I live actually even the best place to invest? Or is there somewhere else in this huge country called Australia that based on economic conditions and industry outlooks, that would provide a safer and more astute investment decision.

Choosing the right property within a strategically selected location is then a lot more complex than simply searching online real estate portals. What is the general demographic of that location? What is the demand in that specific location? What is the historical and forecasted supply? Should we be investing in houses or apartments based on the answers to those previous questions?

This is yet another example of the level of research Propertyology undertakes and carefully considered prior to formally recommending this location and this specific property to first time clients, Mark and Kylie.

Whilst this particular property is very appealing, and might even be the style of property that Mark and Kylie would live in themselves, it isn’t why it was selected. The fact that the property has four large bedrooms, an additional study, two bathrooms, two separate living areas and a media room, isn’t even the reason we selected it.  Why was it selected? Because this property meets Propertyology’s strict selection criteria in terms of zoning, flooding, social housing and proposed development activity just to name a few. It is situated in one of our ‘acceptable streets’, is the right style of property for the local demographic, appears to be low maintenance and it is in good condition.

Situated 15 minutes from an Australian Capital CBD this particular property is currently renting for $425 per week.

Taking all of this into consideration, along with the fact that our independent market appraisal suggested that this property was good investing if purchased up to $430,000, the biggest cherry of all is that fact that our Buyer’s Agent Bryan Loughnan was able to negotiate a purchase price of only $409,500!

Overall an exceptional result. Congratulations again Mark and Kylie!

Propertyology are Australia’s most respected Buyer’s Agents, not just analysts.


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