Home
  • plan
  • Invest
  • Property
  • enquire now
  • Learn
Home
DPN
  • plan
  • Invest
  • Property
  • enquire now
  • Learn

Research

The essential criteria for picking an investment property

If your next real estate purchase is your first time property investment, chances are you'll need a bit of a primer on what to look for.

TAGS

Research (92) / Beginner (575)

If your next real estate purchase is your first time property investment, chances are you'll need a bit of a primer on what to look for. Fortunately, there are certain criteria you can use to narrow down your choices. 

Choose a capital or major city

Capital or major cities tend to have steady growth over time. Such metropolitan centres have large and typically growing populations, as well as receiving a large degree of public funding for projects and works. 

It can be tempting to invest in boom towns, which experience meteoric short-term growth, or property in regional or vacation towns, but success here is often fleeting and based on speculation. If something suddenly makes the area less favourable - such as drought or the end of growth - this can leave you in a worse-off position. 

Within these major cities, you'll want to pick growth suburbs - areas with steady population growth that are seeing a significant amount of infrastructure investment. A stable increase in population means more sustainable market growth, while added transport links, health care facilities and other infrastructure attracts buyers and pushes prices up. 

An affordable entry point

Expensive doesn't necessarily mean better. Investing in property is a long-term wealth-growing strategy, rather than a get-rich-quick-scheme. So look for an affordable property within your means that's located in a growing area - if you choose wisely, eventually that entry price will have grown significantly. 

If possible, a property with a land component is preferable - land is limited, so this type of home is more likely to appreciate over time. 

Buy new

To make the most of your investment, a property that's as new as possible is ideal. This is because the depreciation of your investment property can be offset against your taxable income for tax savings.

In addition to all of this, consider working with a company that offers a fixed build time and rental guarantees. DPN do this successfully, as well as providing you with a free property investment plan before you start looking.

 


Follow us on Twitter for more news, tips and inspiration.
Like us on Facebook and Google+ explore our Pinterest boards.

Like this article or found it helpful? Share it!

Newsletter

Receive our articles directly to your inbox

Next article

Loan structure strategies and how to secure them

Go to articles list

Programs

Work with us
Giving back
Become an affiliate
Refer a friend
Help desk
Property Management
Finance

Locations

Head office
Australia
Hong Kong
Singapore

Contacts

Toll free in Australia
P. 1300 723 318
Outside of Australia
P. +61 2 9525 2033

Social Media

Newsletter

Terms of use | Privacy policy | Guarantees

This information is provided by DPN Pty Ltd ABN: 94 630 700 186 Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and related entity of DPN. Credit for Dream Big 100% Offset and Work Smart 100% Offset is provided by Adelaide Bank a division of Bendigo and Adelaide Bank Ltd, ABN 11 068 049 178 and Australian Credit Licence 237879. Casa Capace Operations Pty Ltd, NDIS provider number 4050038018 trading as Casa Capace.