Avoid the ‘buy and hope’ investment strategy
Selecting a good investment property is a complicated process and shouldn’t be left to chance, Brisbane buyers agent Meighan Hetherington says.
Hetherington, the director of Property Pursuit, says too many investors are missing out on the best returns because they don’t do enough research before buying an investment.
“Many investors mistakenly think the process of building an investment portfolio is as simple as choosing a property that’s cheap, put tenants in it to pay the mortgage on it and then hope it doubles in value over a few years so they can sell it,” she says.
“However, done properly, the process involves a lot more work and research than just taking an educated guess on a property and hoping for the best.”
Hetherington says investors should consider factors including their own financial situation, their existing investment portfolio and their goals for the future.
“Every investor has a unique situation. They all have different goals for investing – some hope to earn a great passive income, while others would like an investment property for their children or parents to occupy. There are no two situations or investors that are the same, and there are no two solutions that are alike.”
Choosing a property that will appeal to tenants is also vital, Hetherington says.
“I have seen so many investors make the mistake of choosing a property they would like to live in. However, whether the investor likes the colour of the walls is irrelevant. They need to rather ask themselves whether the property is close to facilities such as public transport, shops and schools.”
