Unfortunately more than 90% of those investors fail to reach their desired outcomes.
They failed to develop a plan involving all who could make it happen and in many cases chose the wrong location for the type of property.
There is no doubt that we are entering a difficult time for investors to be able to make choices which will sustain their hopes into the future.
I believe that it is imperative for investors to have a plan for their investments containing realistic objectives with strategies and both action and fall back plans.
The plan will lead to choice based upon borrowing capacity which then leads to location and type of property.
If the location selected meets the selection criteria for capital growth that is the first step.
Next the property quality, design, tenant attraction followed by a management plan.
This sub plan involves the property manager, tenant, investor and landscape gardener if it is a house and land package.
Given the enthusiasm of all involved the property should be one of the best in the street and should sustain quality and compete favourably with other properties in the same area if up for sale or applying to the lender for further finance.
It should not fall victim to oversupply or property downturn as much as others due to quality build, appearance, fit out and house and garden maintenance, Investors who buy cheap, perhaps seeking high rental yield, and fail to sustain or improve the property will not reach their capital growth expectations.
I am constantly meeting investors who have purchased properties on the recommendation of a financial advisor who then introduced a marketer who sold them a property without any concern for the investment objectives or the capacity of the property to meet the expectations of the investor.
They are disappointed at the outcomes to date and have become quite negative about property investment. Methinks that there may be conflict of interest.
My response to their problem is “Why would you go to a boat builder to buy an aeroplane?”
If your financial advisor recommends property and introduces a supplier check it out very thoroughly applying the same stringent test we have at Meredon and Mediwealth Australia for the selection of location and type.
Experienced property consultants are available free of charge to assist our clients to develop a simple and effective plan most likely to produce the best possible outcomes.
Don Duncan F.A.I.M.
Don is the Principal Consultant at Mediwealth Australia, with over forty years experience in developing successful residential property investment strategies, and extensive experience in the financial sector, Don is uniquely qualified to provide you with the best property investment advice available. He is supported by experienced property investment consultants in both Brisbane and Sydney.