Wealth through Property
Who has the most to lose?
5% deposit, 5% risk.
Residential, or Commercial?
Many people ask themselves when starting out, what property do I start with? Residential, Commercial, Industrial? Use the same principal above and have a look at where the banks are willing to lend you the most money. For example most lenders will only lend you 80% for commercial property, where as residential property (in certain postcodes) you can usually borrow up to 95%. Don't get confused though, off the plan properties even though they can be residential don't usually attract 95% lends either. This example comes down to the TYPES of property, discussed later. For detail on these examples order the FREE DVD.
Postcodes to buy in.
Be aware that even though the banks will lend you larger amounts of money in some areas than others, there are a number of other factors that come into play when picking a solid investment. Firstly ask a professional what postcodes the banks will lend you the most money in, and secondly have a think about they types of people that would be living in those areas and ask yourself whether or not you would want them living in your investment.
Infrastructure.
Have a look at the infastructre in the area/s. Trains, trams, buses, shopping complexes, cafes, restaurants, schools, shops, hospitals, etc. Does your future investment property have these facilities close by, maybe 1-2 kilometers away?
Any more being built?
For some reason we as investors think that it is quanitiy when purchasing residential property. This forces us to look in the outer suburbs where properties are cheaper and where there is usually more land with homes being constructed. When you think about it THE BANKS can lend up to 95% in these areas, but, the law of demand states that if supply remains constant, increase in demand results in an increased market price. Therefore the opposite could be said for properties in new areas or in the outer suburbs. When you think about it if there are properties being built or constructed in the area that you are lookingg to invest in, why would someone buy your property when they can build ther own for a similar price in the same area.
Would you live on a main road?
When looking at all of the above information you do still have to look at (once you have the postcode sorted) where to buy within the postcode specifically? One of the most obvious things to stay away from is where you as a prospective tenant would not want to live. To get a good idea, take a drive around the postcode and look at where you find the most FOR LEASE boards. Remember, properties that are in demand will usually stay that way when looking at buying, selling, or renting the property.
For more information order the FREE DVD by clicking below.
http://www.21stcenturyacademy.com.au/cmd.php?af=965302
When asking yourself where is the best place to invest, first ask yourself, who has the most invested and who has the most to lose? When you come up with the answer to the question, have a look into where they think they best places to invest might be. For example, the banks have specific postcodes they will lend you larger amounts of money in. They also have certain postcodes that they will lend you smaller amounts of money in. Therefore, you would think that where the banks are happier to provide more money (more risk for them) would be the better places to invest based on their research. If anyone has got a lot of money to tip into research as to where the safest place to invest is, it is THE BANKS. So given this you would think that the banks would know what represents a good investment and that we as investors should listen to them when investing.
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