Choosing Your Investment Property

Buying an investment property is not like buying your home, because you have an emotional attachment to your home.

You buy in an area you want to live, and a house that suits your individual taste. The purchase of an investment property should be based on investment fundamentals. You want your investment property to appeal to the rental market now, and then to a large number of future home buyers.

A residential property investment should have the following fundamentals: The location should have strong population growth, a diverse range of employment opportunities, current and planned government and private sector infrastructure spending, and be located on good transport routes.

There should be schools, public transport, shopping facilities and entertainment facilities in close proximity. The property should suit the demographic. i.e. if the local residents are families, it should be a 4 bedroom house Buy on or below the median price. Every city and state of Australia has a median house value. This is the value you should look to invest at or under. The reason for that is it represents the largest section of the rental and buyers market. If your rent and sale price is at market value, you should have an excellent chance of attracting both tenants and buyers.