What Kind of Property is a Good Investment?

As an expert in property investing and founding CEO of Property Mavens (property investment advisory firm) Miriam Sandkuhler frequently gets asked her expert opinion on what makes a property a good investment. The truth is an “investment grade” property has a combination of the following factors:

High Demand

Unsurprisingly, “You want a property that is in high demand” explains Miriam. People should want to rent there and also would want to buy it from you down the track. So how do you find out if a property is in high demand?

• Do research to make sure you are buying in an area with the right micro and macro economic growth drivers​
• Growth drivers include: strong population growth, plenty of employment opportunities, and either established infrastructure or future infrastructure development

Local Amenities

Everyone knows amenities are key to a great area. So what amenities exactly are you looking for?

• Shops and cafes or restaurants
• Schools
• Community centre
• Swimming Pool
• Good public transportation

Buyer Demand (talking to agents)

Knowing supply and buyer and tenant demand are all very important factors to not making a purchase mistake. Miriam advises to talk to agents and ask, “What’s the buyer’s demand like and who are the people that are buying in that area?” And more importantly, “Who are the people renting in the area and why are they renting?” Miriam has seen people make the mistake of buying in areas where they can’t get a tenant, simply because the rent they are asking is exactly what someone would pay as a mortgage payment to be in that area.

Right Criteria

While this point may seem obvious it can be more detailed than you would think. In fact, there are actually 57 attributes that Property Mavens use to assess each property individually, to determine if its investment grade. Number one attribute is buying in the right part, of the right suburb. Some other examples are a great floor plan, well built, good natural light, and a quiet neighbourhood.

While this gives you a glimpse into where to start, there is so much more to know about wise property investing. Start by looking at the specific criteria to help you understand more about the property you are considering, or future properties to enter the property investment field.

Rate Your Property Expertise

About Miriam Sandkuhler, Property Investment Advisor