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What Should Be The Location Of Your Next Investment Property?

  • Reading time:5 mins read

 

When buying a property for investment, the first thing you need to know is your clear purpose for why you want to invest. Purpose is stronger than will. Then you can decide what you want the investment property to ultimately do for you.

Write on paper what you clearly want and why you want it. Write 20 ways on how you will achieve this objective and choose the one that you believe is the best way to begin. Look at your objective every day, and as many times as you can during the day, as this will make you think about it and will drive you to awaken hidden abilities, talents and faculties that prompt you to take the necessary actions to start and stay on course, even though when things do not seem to be going right.

Selecting the right property

Is it better to own one investment property or two? It’s a good question. When it comes to real estate though – more properties are often better. A common mistake amongst investors is borrowing high to buy their first investment – maxing out their purchase compared to borrowing capacity is not a good policy, always leave a buffer just in case.

 

Rental Yields

Arguably one the top indicator of a successful investment – rental yield is the income stream of the property and a good representation of the market value of the investment, however it is not as important as capital appreciation. Rental yield can be calculated by dividing the annual rental income by the price of the property then multiply this figure by 100.

 

Location and capital growth

Location is one of the most important aspects when investing, aside from understanding debt and taxes. Location has an important bearing on potential return and the property value in the long term. However, to understand location we must understand that there is historical data of real estate for the past two hundred years that give us a clear blueprint of what to look for, where, and why when it comes to location.

If you look at the geography of the real estate market and you will see that NSW, Victoria, Queensland, Perth, Adelaide, and Tasmania is where most of the capital appreciation is generated.

And if we stay to the most notable ones like NSW and Victoria we can’t go wrong. Mainly because real estate is like any other commodity, it goes up by the basic rule of economics – supply and demand. Larger numbers of people means better capital growth. The higher the disposable income, the more expensive the lifestyle and the higher the salaries, taxes … and now you can start to create a picture of how capital appreciation works.

Think capital appreciation, then microeconomics, to find the best location you can afford to buy and act on it – the property itself of secondary importance. The value is in the land, the house is not as important. Remember that the objective of investing in real estate is based on why you want to invest, your clear goal and objectives, meaning how much and in what time frame.

More people, higher living expenses, higher incomes, higher taxes, higher tax deductions, and motivation to take the tax gorilla off our backs is the main reason for most to invest in real estate. Once this is clear we look at the microeconomics of an area for transport, shopping centres, schools and education facilities, hospitals, and where most people go for entertainment.

 

Why choose Landmark when buying an investment property? 

Landmark Investments is looked upon as one oldest and most trusted Investment Property Company in Melbourne and Sydney. All our proposed properties are located close to essential services and amenities such as school zones, universities, train stations, hospitals, and major shopping centres.

Our mission and why we exist is to help clients pay off their home loan as fast as practical and bring down the stress levels of families so that they can breathe by implementing the best finance strategies. Which include but are not limited to helping reduce home loan rates to as low as 0.75%, paying off home mortgages in approximately 5 to 7 years, pre-paying interest, and reducing taxes by recommending new properties and engaging our recommended team of accountants, financial planners, finance experts and property guides to complete all the necessary work to make the strategy work for you.

Landmark investment property options are either newly built, or purchased off-the-plan in the metro and regional areas of the states we work in. Properties in the metro and regional areas offer the highest appreciation, and rental income, as there are more jobs and a higher concentration of individuals with an above-average income who are willing to pay more for these locations.

Landmark Investments has access to over 125 unique projects, with thousands of properties to choose from across Melbourne and Sydney.

 

Conclusion

For first-time investors, investing in a property can be equally exciting as scary – which is why it’s important to work with experienced professionals who can help create a rock-solid action plan to achieve your financial objectives and take action with you together. Plan your life and live your plan.

Start learning by joining our Webinar to see how you can pay off your home loan in as fast as 5 years, reduce your income tax liability by at least 30%, and start securing investments with just $1000. Click here to register for our investors workshop.

Or email us at: info@liha.com.au