We asked four WA property professionals for their top three investment tips.
Alan Hancock, chairman, AUSNET Real Estate Group
1 YOU should always try to buy a property where land is scarce, such as in areas near the city centre, river or ocean. Properties in these areas tend to increase in value the most over time. You don't need to buy the most expensive property in these areas to make money.
2 IF you are buying property and want to make money, timing is critical. Take a long-term approach to the property market. Now is an excellent time to buy a home as it is only a question of time before property prices begin to rise again.
3 PUT in place a long-term financial plan. There are excellent opportunities in the real estate market over time, but it is important to be able to take advantage of them, which can be achieved if you have the correct finances in place.
Nigel Satterley, chief executive, Satterley Property Group
1 BUY correctly. Always buy in a good location, next to amenities health, schools, transport etc. If you decide to rent the property, the demand will be greater. If you decide to live there, the property will appreciate in value.
2 ALWAYS buy a home on land that's where the money is. Houses on land, for example, will appreciate better than apartments. Make sure you're in a position to negotiate with the real estate agent.
3 MAKE sure you thoroughly inspect any potential purchases. Check things such as the roof, wiring and for damp spots, to avoid costs down the track.
David Hobbs, chief executive, Professionals Real Estate Group WA
1 BUY an established home as near to land value as possible. Houses are fully depreciated after about 40 years, which effectively means that they can be bought for near land value.
2 LOOK at future local infrastructure projects that might boost property values in the area. Proposed new roads, railways or shopping centres, for example, can make a suburb more attractive to future buyers.
3 IF you buy a large block that has the future potential for rezoning, the price of this land may increase significantly once the zoning plans are finally approved. Check with the local council about any future plans for
rezoning in the suburb.
Gavin Hegney, executive chairman, Hegney Property Group
1 IT'S always about what you buy, not what you pay. It's not just about getting a bargain. Land appreciates in value and buildings depreciate. Land is the driver of growth, so have at least two-thirds in land value as a proportion of total worth.
2 EIGHTY per cent of people buy homes to live in and 20 per cent are investors, which means that if you can determine where people are going to want to live, you can do well as an investor. As the population ages, those over 65 years are net sellers of property while the 25 to 35-year-olds are net buyers of property. That tends to put the ongoing balance of demand into the younger age group. Usually, you find potential for capital growth where the demand is growing as supply holds.
3 AS important as location is, it's also about the property's unique position within that location. This can include a number of factors such as the privacy factor of a house, and where it rests on a hill (such as the peak). Another important factor in making a house more desirable is the presence from the street. Ultimately, it's a combination of these factors that will best work to increase the money-making potential for customers.
Source http://www.perthnow.com.au/
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