Q. I am looking to invest in property for the first time. What are some useful resources and how can I find a good area to invest in?
A. As a first time investor, I’d recommend you firstly determine how much you are able to borrow.
Having done this, you can narrow your search down to those suburbs where you are able to afford a property. The next step is to do your research – identify the suburbs that have properties for sale that meet your price and rental yield criteria.
As a first-time investor, a good place to start is by downloading the free RP Data Autumn Investor Guide by visiting www.myrpdata.com.au/investorsguide.
This report provides some extremely valuable information and best of all, it’s free. It provides a guide to where properties have seen the best value growth and where the best rental growth and yields have been evident.
Some of the key things I would advise a first-time investor to do is to find out about the local rental market. Rental demand will generally be strong in areas that are close to large employment nodes, universities and efficient transport options.
Once you’re satisfied that you’ll be buying in a progressive area with good amenities, start identifying individual properties that meet your investment criteria.
Look at recent comparable sales in the local area and if you aren’t confident in your assessment, you can always get an independent valuation on the property. You can use this recent comparable data on both sales and listings to help you with negotiating as well.
Remember, investing should be devoid of emotion – base your decision on the numbers and the location.
- Tim Lawless, head of research, RP Data
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