For first-time buyers or investors considering off-the-plan, the process can be daunting. We have put together some pointers.
■ Get out of the mindset that you need to invest in the area you live in. That could limit opportunities to buy in areas experiencing capital growth and rental demand. Remember growth can happen in regional areas as well as urban. Successful investing needs a business mindset.
■ Target areas where new infrastructure is to be built. Suburbs close to where new roads, freeways and public transport are to be constructed will be more attractive to tenants and are a sure sign of where the population is expected to grow.
■ Identify commercial and social investment areas. Find areas where new shopping centres, hospitals and schools are to be built in the future. This also applies to gentrifying areas where new cafes and shops are opening.
■ Invest in areas with more demand for housing than supply. Look for areas just starting to experience an increase in house prices and with low vacancy rates. A low vacancy rate means you will be more likely to tenant an investment property quickly.
■ Invest in surrounding suburbs. If you miss out on a property in a booming area, consider the suburb next door. In many cases the surrounding suburbs are likely to become hot spots themselves with time. You can piggyback the success of the existing hot spot while likely paying less for your investment.
■ Speak to property investment experts and like-minded investors.