I don’t know about you but I am totally at odds with many of the so called experts (definition=drips under pressure) commenting on the property market.
It is very much like the U.S. political scene at the moment where the news media is grasping on anything likely to be controversial and generally ignoring the important news about U.S. productivity, employment, health care and gross national product.
I do respect the output of experienced commentators like Terry Ryder and Michael Matuzik. They generally tell it like it is.
I have been involved in residential property investment since 1960 with my first property at Cliff Avenue in Northbridge, a suburb of Sydney. I made mistakes and learned from them. Read my book.
Whilst I accept that rental income is an important factor in paying for the property, the main game is capital growth for most investors whose plans for retirement may be 20 or even 30 years away.
Since then I have followed a simple formula which enables me to ignore most of the news media regarding the property market and to focus on any potential investment property with the objective of it being one of the best in the street, building or estate of similar size and accommodation at the time of sale or valuation by a lender.
The simple formula is buy quality – sell quality. Quality does not have to be the largest or the most expensive. It has to be of a design and construction to owner/occupier specification and inclusions with an attractive facade with well maintained lawns and gardens – if a house.
Our clients are always advised to spend extra on quality and the rewards will come later, particularly if they follow our suggestion that a landscape gardener installs the lawns and garden with a bi-annual visit to inspect, replace and renew where appropriate.
It really is simple – invest in a property in a location which will sustain a good reputation in terms of area maintenance, infrastructure now and into the future, with transport readily available to take residents to their workplaces. Schools, churches and access to major shopping as well as recreational facilities play a big role in sustaining a resident friendly environment. I always have a good look at the figures related to crime and street violence which can be accessed through the local police.
That is the hardest part of the simple process. The next choice is the property which should be of the same or similar type to the majority of building types in the area. You don’t want to be selling a house in an area which is almost totally apartment buildings.
In conclusion, I encourage you to have a plan developed by people who are experienced in all of the facets of residential property investment – legal, lending, management and property experience.
It is an accepted fact that nearly 90% of residential property investors fail to reach their key objectives through either failure to plan or choice of a poor location for capital gain.
Once a plan is developed and signed off, we find that our clients are much more at ease and confident about reaching their financial outcomes for retirement.
If you want to feel at ease about retirement security, give me a call – no charge for the advice.
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.