Opportunities exist in any suburb: property adviser
While investors traditionally focus on identifying capital growth hotspots, a national adviser has suggested the right property in any suburb could prove a profitable investment.
According to Steve Waters from Right Property Group, great investment properties could exist anywhere in Australia.
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“I think you could just about double your deposit anywhere if you buy well enough,” he said.
In his view, investors should look for opportunity where the “figures stack up” rather than buying purely based on an area’s potential.
In particular, he favours properties being sold for less than their true value such as distressed sales or mortgagee in possession.
“That potentially means buying under market value. Obviously, there has to be capital growth there as well and the cash flow to support your property,” he said.
Other criteria include nearby infrastructure and access to amenities.
He also suggests looking for a property without “warts”, meaning potentially unfavourable features.
“That means it’s not affected by road widening easements, flooding, powerlines or other negative attributes,” he said.
To narrow down the search area, he suggests seeking out affordable suburbs which attract large numbers of buyers and tenants.
