What Should You REALLY Be Looking For?

What Should You REALLY Be Looking For?
An Editorial By Phil Anderson - Tuesday October 11th

 

There are literally a quarter of a million properties for sale at any one
time in Australia. Yes, that’s right, 250,000 properties to choose from, so you can forgive certain people for sometimes letting themselves become overwhelmed into thinking that finding the perfect property is
like finding a needle in a hay stack. But to a degree, I applaud those who exercise some level of caution, as opposed to just jumping in and buying any old (or new) thing, because when it comes down to it, almost 99% of these properties can be disregarded immediately. Let me tell you why.

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Lets start with something painfully obvious. Not all properties would make the perfect home for you and your family. Your family size, recreational and weekend activities, work commitments and locations, being near other family members, property style and feel, let alone what you actually want, all play huge roles when choosing a family home.

Processed with VSCO with 4 presetFor the same reason that you wouldn’t just grab a map and play Pin The Tail On The Donkey to blindly find your next home, you also wouldn’t blindly select an investment property for the same reasons.

I believe that almost 99% of properties, when it comes to investing, can be immediately disregarded as they don’t meet the very clear and refined investment strategy that my team and I have honed carefully for more that 20 years. The whole purpose of this strategy is to do one thing…. remove emotion from the equation!

When it comes to your own home… get emotional. If you find yourself not connected on a deeper level as you walk through a candidate for your future home then perhaps you are in the wrong place. A new home should evoke a feeling deep inside of, “Yes, I could definitely see myself living here!”.

But where this emotional switch needs to be turned off is when you are shopping for a property to sit in the investment column of your balance sheet. As discussed, we all have different criteria for our desired homes, so considering whether you would live in a potential investment property should be largely disregarded.

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What should be focused on is not would “I” want to make this my home, but rather, “Would the majority of tenants want to make this their home?”

If you get this measure right, focus on the numbers and remove your own personal biases from the selection criteria, then you will already be ahead of most investors, and in the process have a lot of the hard work done.

The devil is in the details, as they say, and property investing is no different. The details of what your expenses will be each week, what the key growth drivers are for the local area, as well as who your potential tenants may be should be at the top of this list.

So often I hear stories of property investors being seduced by glossy brochures or the possibility of a great deal with the next door neighbour. When it comes to property, emotions can often run high… but always
remember this; the numbers don’t lie.

 

To learn more specifically about how Lifecorp researches and identifies these markets for our customers, please download our complimentary State Of The Nation Report now.

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