How to avoid buying the wrong property

How to avoid buying the wrong property

Peter Koulizos - The Property Professor


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If you want to grow your portfolio, you have to make sure you're purchasing the right property in the right area.

Some of the common pitfalls that property investors make - in particular beginning property investors - is buying the wrong property and buying the wrong property in the wrong area. Because of you to be able to grow your portfolio, you've got to make sure that your property grows in value. Now the growth factors generally are location, that is a key factor, and also the land component. For example, if you buy a brand new apartment you are going to have limited capital growth due to the limited land value. Whereas if you buy a home in a reasonable location then you are hopefully going to have more capital growth. So far as location is concerned, capital growth closer to the city or closer to the beach. So if you're looking to make a safer investment get something with a reasonable land value and also in a great location.

Listen to other instalments of The Smart Property Investment Show:
Episode 52: Will property prices fall? When? And by how much? What investors need to know
Episode 51: SPECIAL EPISODE: SPI team reveals all the financial details of its portfolio
Episode 50: 8 properties by 25: Former housing commission kid reveals how he changed his life and created wealth
Episode 49: How to build a sophisticated multi-property portfolio
Episode 48: ‘From just $2,000 in my pocket to 6 properties’
Episode 47: The SPI Show answers more listener questions: Special episode
Episode 46: 4 properties by 24 – how to build a portfolio without sacrificing fun, travel or food
Episode 45: Special guest Mark Bouris on what really makes property prices rise and when to invest
Episode 44: ‘11 properties by 31, now I’m stuck: What’s next?’
Episode 43: 22 properties by 30: Can Generation Ys build massive portfolios?
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