An informed property investor is a smart property investor, with one property expert stating preparation is the key to a successful investment. Here are the steps he believes you need to do.
Patrick Bright, director of EPS Property Search, claims the key to buying property successfully is largely down to preparation.
To start with, Mr Bright said an investor needs to inspect 100 renovated and unrenovated properties that meet general standards.
“At the outset it’s all about becoming intimate with the local market and conducting your comparative market research,” he said.
“This will take a good deal of effort and several weekends driving around and inspecting, but it’s a very financially worthwhile investment of your time.
“Your goal is to become an expert on the local market for your target property type.”
Next, investors should be performing comparative market research, as Mr Bright claimed it is a huge asset during negotiation (opposed to historical property sales report, which can lead to a false perception about an area’s prices).
He explained: “The reports don’t tell you how many living spaces a property has, the size of the rooms, the flow of a floor plan, if its private or looked in on, the condition of the property – unrenovated, renovated or partially renovated or even the aspect.
“Most will give a land size but they don’t tell you the shape of the block, if it’s level or on a slope, or if the house is at the front, middle or back of the block – each one of these factors have a big influence on price.”
After each day of inspecting, Mr Bright recommends that investors collate reports on all the properties that were looked at, noting key features.
“By the end of the day it can be hard to remember which property was which,” he said.
“You will need to record the basic features of the property, how many bedrooms, bathrooms, car spaces, attractive features and its condition.
“It’s also a good idea to take photos of any features or views that you want to remember.”
He also said to make notes on any brochures received from agents, and mark the date on it.
“This will make a good reference point when you’re ready to make an offer on a property,” said.
After doing the proper research, Mr Bright concluded that property investors should