The key to successful property investing is to really do your homework and be clear about your goals for the investment.

There should be no emotion involved when buying an investment (unlike a house you plan to live in), so we’ve created a handy guide below of various factors to consider when choosing a property. 

Our tips mainly apply to residential property investment, but we also encourage investors to consider commercial property as another option.

Be Clear on your Goals‍

It helps to be clear on what you aim to achieve through your property investment, whether that be long-term wealth creation, passive income generation, or a retirement strategy.

These goals will dictate the type of property, price point, and location you may consider when narrowing down your investment choice. 

If you aim to maximise monthly rental income, it pays to research typical rental yields for various properties in the suburbs you are considering. For longer-term investments, there are standard sets of features to look for in a property, which we will cover below.

Location, Location, Location‍

Certain suburbs will offer greater growth prospects than others, so it pays to do more homework on historical trends as well as future predictions from industry experts.

Research into future plans for a particular location can also reveal some significant growth opportunities. For example, if a new train station or major shopping centre will be built nearby in the coming years.

Other features that can boost future value are:

* Proximity to transport and connections

* Access to employment opportunities

* Restaurants and cafes

* Community services such as childcare and medical centres

* School catchment areas

* Proximity to leisure activities and parks

‍Features of a Great Investment Property‍

One important consideration is whether to invest in a house or unit/apartment. Houses have a better upfront cost; however, they usually generate higher growth over time due to the greater land size typically found. On the other hand, units are more affordable; however, the growth developed over time is not as high. 

Here are some additional features to look for in a property: 

* Off-street parking spaces

* Broad appeal to multiple demographics

* Orientation and natural light

* Size of outdoor space

* Amount of expense required to maintain the property

* Quiet residential street

* Multiple bathrooms

We hope you found these tips helpful and wish you well on your investment property journey!

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