Colliers International | First Time Property Investor Guide

4. DO YOUR HOMEWORK You may think you’ve found a good deal, but it is important to do your homework first!

Understanding property markets takes time, speak with your agent and stay on top of trends by following sites such as CoreLogic RP Data, domain.com.au and realestate.com.au – which are good for market trends, including value increases and lending trends. SQM Research has a database for vacancy rates, identifying where tenant demand is strong and weak.

Other things to consider, include: • Familiar markets - Consider buying property in an area you are familiar with, as it will take you less time to research. Check recent sale prices in the area to give you an idea of what you can expect to pay for local properties.

• Growth suburbs - Look for areas where high growth is expected, with new government investment plans to the local infrastructure where there is potential for capital gains.

Property experts regularly provide tips on up and coming suburbs.

• Rental yield - Look for areas where rental income is high compared to the property value.

• Low vacancy rates - Find out about the vacancy rates in the neighbourhood. A high vacancy rate may indicate a less desirable area.

This may make it harder to rent the property and may make it difficult to sell in the future.

• Planning - Find out about proposed changes in the suburb that may affect future property prices. Things like new developments or zoning changes can affect the future value of a property.

At the end of the day, it all comes down to supply and demand.

It is important to do your homework before making a purchase decision. The team of experts at Colliers International are also here to help you and can provide guidance, as well as useful tools - such as rental estimates and tax depreciation schedules.