Copyright:Pear Real Estate
1. Is the purpose of the investment clear?
If you invest in a property without a clear purpose, it is likely to lose money.
Solution: To clarify the purpose of the investment, whether it is to sell, sit or wait for appreciation or use it, knowing this will help you to develop the right investment plan.
2. Is the rental rate good?
No matter how much you care about this property, as long as it is vacant, it will soon become your financial burden.
Solution: Do the survey.
“You can consult with real estate management experts about the rental needs and tenant market in this area. If many tenants want to rent such a home, then this is a property worth investing in,” added Mr. John. “At the same time, understand Rent vacancy rate. Search the current rented house through the Melbourne Times and compare it to the total number of rented houses in the entire suburb (available from the Australian Bureau of Statistics). If the ratio is less than 5%, then the rental market at this time It is very suitable for investment.
3. Is the location right?
As far as the same district is concerned, not all the plots in the district are the same, some neighborhoods are more sought after, and some are not. You have to make sure that your investment room is in the former rather than the latter.
Solution: Make sure the location is what buyers and tenants want. If you want to rent to a student, try to rely on public transport facilities and investment facilities in educational institutions. If you are a family tenant, it will be more attractive to be close to the school.
4. Is the transaction price reasonable?
House auctions can be confusing for investors, and if you are not well prepared, it is easy to spend more.
Solution: Do more research. Mr. John suggested that investors can browse sales reports in the suburbs, such as APM's house price guide, or search online for the number of homes for sale.
If the number of homes for sale is less than the monthly average, the housing market is relatively hot, so you not only have to pay too much transaction volume, but also the future capital growth is likely to be limited.
5. Is the housing structure up to standard and is the legal procedure complete?
When your investment room meets the above four factors, you must consider the last element - housing structure and legal procedures, otherwise you will lose money, not profit.
Solution: Check before the transaction is completed. Conduct building inspections to ensure a stable structure of the investment house, check with local government agencies, and identify possible problems with legal procedures, as these issues are likely to hinder your investment room renovation or development plan.
Real estate requires careful research and calm decisions. Considering the above five questions can help you avoid making mistakes.
Investors invest in real estate, just as they need to analyze the fundamentals of investing in stocks. The most important thing is to analyze the market and supply and demand, rather than neglecting long-term capital appreciation for the immediate profit. The Australian population is constantly pouring in, and the demand for housing is also growing. Even so, investors need to do a good job of investigating the movements of the population, and then whether to invest in commercial real estate, or residential, investment apartments or villas. This will be targeted.