Buying an investment property can be a great way to create wealth and build up a healthy nest-egg for retirement. Yet the biggest problem many people face is choosing the right investment property to suit their financial needs.
What works for one investor’s strategy may not work for your individual situation, so it’s important to choose the right option that propels you towards achieving your financial goals. The biggest challenge is trying to determine which property will be the right one to add to your portfolio. Here are some tips to consider.
Scarcity and demand drive property values, so if your goal is to hold an investment property over a period of time for the future capital growth look for properties in highly-sought after locations. Inner-city suburbs near the CBD or areas near the waterfront are always in strong demand with buyers and renters.
Likewise, up-and-coming suburbs with new or upgraded infrastructure can also hold opportunities for capital growth. The key is researching your market before making a decision about which property to add to your portfolio.