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Tips for future investment property hot spots

I am interested in trying to buy an investment property in an up-and-coming suburb in Sydney. However, I am prepared to buy in Brisbane or Melbourne. What is the criteria for picking these future hot spots and do you have other tips?

You need to settle on what you’re going to pay and most experts use borrowed funds and interest only loans. They talk to their accountant to get the cash flow part of the story right, as there will be tax deductions. They then get mortgage brokers to find the best loan and they trawl through the websites to find the right property where tenants want to live or will want to live.

The future bit can be tricky but look at suburbs where houses and apartments are going and make sure they’re selling like hot cakes. That’s a good sign. Use search engines to build a dossier on various suburbs in your price range and make sure the news stories are good ones. Anything that talks about nuclear power stations or tanneries won’t be great for attracting tenants or seeing capital gain. Talk to real estate agents but don’t believe everything they say and go to specialist websites such as Residex where the history of prices can give you a guide as well. It will be the calibre of your research that will help you see potential value.

Of course, government plans to build a new highway or rail link can be a real help for landlords and home owners, but you have to be sure that the government won’t change its mind! That could hurt your ultimate profit.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Published on: Monday, February 21, 2011

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