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Determining where to invest is one of the many key questions an investor grapples with before considering investing in property.
Typically, investors consider investing in their own backyard. That is, the suburb in which they work, live or play in. The underlining basis of such a decision, is investing within one’s comfort zone.
With this premise in mind the questions to be asking are:
To obtain a clear understanding of how well you actually know the suburb, you may want to ask yourself some of the (but not limited to) following questions:
How did you go? Where you able to answer the questions accurately? If you did you may be feeling somewhat more confident about your decision. Nevertheless, if you already own property in the same suburb (that is, your house or principle place of residence) investing in the same area will subject you to concentration risk.
If you already own multiple properties in the one State, the other implication you need to be wary of is Land Tax. Land Tax is a State based tax. The more property you own outside of your principle place of residence, as the land values increase, the more arduous it will become to hold your portfolio. To mitigate these risks or costs, you should not only be considering another suburb, (but depending upon your investor profile) you should be considering another City or State. Geographic diversity is just one of the many attributes Aviate can assist you with.
Finding the right investment property requires research and due diligence. When properly selected, an investment property can have good potential for capital growth and provide a steady rental return. Industry knowledge and specialised service are keys to finding investment opportunities. This has once again been demonstrated by Aviate and confirmed by an independent panel of experts in this month’s (September) issue of the Australian Property Investor (API) Magazine.
The API used the following points, (which our investment property provider agrees with unless otherwise indicated) in reference to using the Hot 100:
To find out how our property investment provider can assist you with geographic diversity and other property investment related matters, feel free to contact us.
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