Propertyology’s Simon Pressley says 2017 will be a big year for investors who need to look beyond the headlines.
1. Look forward, not backwards
“Don’t be a creature of habit and make a decision based on what’s happened in recent years. You need to look at the front windscreen, not the rear-vision mirror,” he says.
2. Be realistic about cash flow
Given the amount of investment loans that have been approved for new buildings, particularly in Melbourne and Sydney, investors need to be realistic about rental returns.
“Don’t be surprised if rents actually ease in those two big cities,” he says.
3. Take a good look at regional Australia
Pressley says regional towns with good essential infrastructure and a range of employment opportunities across different industries often have more affordable housing with strong rental returns, particularly areas with a local hospital or university.
4. Look closely at housing supply
The supply of housing stock, particularly in places like Sydney, is set to change. Investors need to thoroughly research the housing developments in the area where they wish to buy. It could be that four new apartment blocks have already been approved for construction in the same street.
5. Ignore your personal taste
Investors are buying a property to make money and you won’t live there says Pressley. Ignore how suitable the property might be for your tastes and lifestyle and think about what potential renters want.