Buying the wrong property in the wrong area for the wrong price, is every investor’s nightmare. Mistakes can be extremely costly and long term. In order to build a viable property portfolio it’s vital to only purchase properties at the right time, at or at less than their real value.
Real estate value. What areas are likely to increase or decrease in value?
Rental yields. Which areas generate the best rental income for your investment?
Longest tenancies. Where are people most likely to rent over longer periods?
Houses or units. Narrow down your guide even further.
Benefits of the tool include:
Save yourself time by getting a fast understanding of areas to invest in
Remove the uncertainty of not knowing if your instincts or own research is right or not
Minimise the risk of buying in the wrong area
Maximise the return on your investment
The most important principle
The difference between purchasing at the correct and incorrect time can be huge, especially over the longer term
Historically, those who purchased property at the CORRECT time have achieved average capital growth greater than 7% during each subsequent 10 year period.
By comparison, those who purchased property at the INCORRECT time have achieved average capital growth of less than 3% during each subsequent 10 year period.
Based these percentages, for the purchase of a $500,000 property, the difference in capital growth can amount to a whopping $369,231 over each subsequent 10 year period!
When is the correct time to buy?
The most important principle in the method is that the map must be drawn based on current real values. If prices are artificially inflated, capital growth will likely be lower than it otherwise would have been. So if all the different factors are not taken into account when comparing values to sale prices, the results are likely to be inaccurate.
No two cities or areas are the same, so it is imperative that each relevant city, suburb and property type are assessed independently. This applies regardless of whether price appreciation is forecast to be high or low in a particular area.