With over 25 years experience in the industry David Caruana, Director at Arlington Homes has gone through many property transactions for the company and it’s clients. The wealth of experience throughout this journey has often seen him as a point of contact for a question or two, that could be puzzling a homeowner or property investor.
His responses for The Arlington Blog may just help you avoid making a costly decision with an investment property in 2020!
He has provided 5 Tips For A Top Quality Investment!
1. What’s the one thing investors always ask for but shouldn’t?
An investment property that is positively geared and has the best capital growth prospects. The general rule of thumb is that the higher the rental yield the lower the capital growth prospects and the lower the rental yield the higher the capital growth prospects, it is difficult to achieve both.
2. What suburbs would you avoid investing in?
When deciding what suburb would be best primed for a investment in property, it is important to consider two factors.
Is there still a lot of land to be developed?
Is there a large amount of high rise apartments?
Both of these variables will have an impact on the potential return on investment in the long run.
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3. We all hear don’t buy off the plan but why not?
Purchasing an investment property off-the-plan is far risker than buying a property that has already been built. Whether it is new or established, being able to see it, feel it and touch it provides the best opportunity to determine if the property is right for you. While there is always a risk purchasing a property as an investment the focus should be about minimizing that risk, as such having a builder that is transparent throughout the building process that allows of amendments throughout is pivotal.
4. What makes an investment grade property?
There are a number of boxes we need to tick off in order for a property to be considered “investment grade”.
Land: Size, shape, frontage & orientation
Area: Distance from public transport, schools, shops, parks, freeways and medical services. Future growth and development
Building: Size, quality, floor plan flow, natural light
5. What makes a better investment: Brand new or established properties?
Purchasing an investment property already established means that your involvement in the design process is restricted. When beginning your property investment journey you want to be taken through the end to end process from framing to lock-up as this develops your knowledge for future investments. As such going through the process of a new build provides a wide range of value, the builder should be providing you with the knowledge of the journey and completed development at the end of it!