Investors are being advised to separate the personal wants for a property and focus on what is important, including rental yield, ease of rent and capital growth.
In a recent episode of the Smart Property Investment Program Thrive Homes general manager Janelle Goulding explained investors often focus on what they like instead of what is the best outcome for the property.
Ms Goulding highlighted the property journey begins with picking the right land, as making a mistake can end up costing an investor thousands.
“For the investor we would recommend packaging is the way to go,” Ms Goulding said.
“As soon as someone comes to us with a block of land there [are] all sorts of issues with site costs. Sometimes there [are] falls across the land or gradient which [mean] your site costs could be $30,000 to $40,000.”
Not only is it important to choose flat land, Ms Goulding reiterates investors should be focusing on location.
“There are 10,000 apartments around Green Square destined to be built and as we know there [are] a lot of vacant apartments as well,” she said.
“Families have to live somewhere and so they still rent properties. So there are more families who would still prefer to be in an area like Boxhill than live in an apartment in Green Square.”
Finally, she explains what investors should be looking for in a new build to rent out, with investors often focusing on the wrong details.
“We have developed an investor pack, which the investor can purchase but that includes things that you might not want in your family home,” she said.
“This includes full-height tiling in your bathroom, tiling throughout, fly screens locks, all those sort of things.
“If an investor came to us and wanted to build a house on their own block of land, I’d question their real investment purpose.
“It’s like buying an apartment, you buy the whole thing. If we have someone that talks about kitchen tops and white goods we question if they are [an] investor.
“They should be more interested in the yield, the location and how easily they can rent the property out.”