If property investors could choose only one superpower, I guarantee it would be having the ability to tell the future.
Imagine that: knowing every turn of the property clock before it happens, when interest rates were going up and which areas will have the best capital growth.
As property investors we try our best to use our hindsight, some have mastered it, others have not – and that’s the difference between a successful and unsuccessful investor.
As a buyer’s agent working for Australian property investors, I’m relied upon to locate, negotiate and secure investment properties that attribute desirable aspects which will produce high returns.
The mantra ‘Location! Location! Location!’ plastered on every piece of old-school real estate advertising seems to ring true more than ever in today’s property market.
Reason being, realestate.com.au’s research for the 2014 Housing Affordability Sentiment Index (HASI) shows that 44 per cent of people surveyed said they wouldn’t buy a property more than 10 kilometres from their preferred location.
It’s a harsh reality, but investors will rule out your property automatically if it doesn’t fit into their preferred location.
With around one in five saying they wouldn’t move just 5 kilometres away from their favoured location, the next question is, what is that location?
Suburbs with ‘walkability’ are top performers, with buyers favouring property in walking distance to amenities such as shops, employment and recreation facilities over those where a car or public transport is required to get there. 42 per cent said they would definitely not or probably not sacrifice that aspect.
On the flip side, the HASI research also tells us what Australians buyers over the age of 24 were willing to sacrifice in order to buy the right property.
The results show swimming pools are the most quickly sacrificed feature in the hunt to find the right property (65 per cent), followed by a second bathroom (35 per cent), a spare room and a property that didn’t need renovating (both at 29 per cent).
Privacy and space from neighbours (at 54 per cent) also ranked highly.
So there you have it – a look into the minds of Australian buyers.
Moral of the story: don’t invest in what the market doesn’t want. Understandably depending on your strategy, and whether your holding for the long-term or otherwise, market conditions and investor search criteria will change but the one thing that won’t is location.
Talk to me about how you can find the right property for optimal returns on 1800 600 890.