Investment property Brisbane
What is an investment grade property? How can your profit from this type of investment? Learn from the best property manager in Brisbane! CALL 1300 799 114
You can make any property into an investment property but not every property is an ‘investment grade’ property.
So then, what is an investment property? Let’s run through some of the factors that differentiate any investment property from an investment grade property.
Investment grade property
- Organic growth drivers – location has good proximity to facilities and services (education, transport, health, shops), lifestyle factors (cafes, , restaurants, parks, water),
- Good land component and value.
- Manufactured growth opportunity – renovation, development
- Property positioned well – close to the facilities and services of the area (preferably walking distance)
- Owner occupier appeal – areas that have good owner occupier appeal tend to increase in value. Properties that have good owner occupier appeal have good re-sale capacity and rental appeal.
- Rental appeal – low vacancy rates, stand out features for tenants such as outdoor living, garage, renovated kitchen.
- Rental return – income producing capacity that meets your needs
- Value for money – don’t overpay, can purchase within your budget
Now, working with investors and talking to many other buyers agents, I do think that some people have a very fixed idea of an investment grade property and believe unless you can meet those criteria, then it’s just not worth bothering. Some of these ideas include things like:
- You must have at least a $XXX budget
- You must be within 8-10km of the CBD
- You must be walking distance to a train line.
Now, all of these things are fantastic. If you can afford that. The problem is that not everyone’s budget will buy this in a given location. So then the question is, if your budget means you are going to have to look at other options, should you be investing in property at all? Should you look at another investment approach such as shares? Or should you save more money before you invest?
The answers to these questions is maybe. Maybe not.
You may be happy to look at other investment options. Or you may not.
You may be able to save a good sum of money quickly to add to your deposit. Or you may not.
You may be able to save faster than the market is increasing in your selected area. Or you may not.
You may have more of a focus on cashflow/income from your property. Or you may not.
You get the idea!
I strongly believe that generalised blanket statements often don’t apply to anyone specifically!
There are definitely factors that make a property ‘investment grade’ but ultimately, you need to assess your situation, determine your own goals, assess your options and create your investment property criteria based on those things. The focus and importance that you place on each of the criteria we’ve discussed may vary based on your investment grade property needs.