How To Select A Property

I’ve put this blog together based on everything I have learned. I’ve worked with 500 clients and helped them purchase over $150,000,000 in property. I’ve also purchased 10 properties myself in the last 8 years. I don’t own them all now because I don’t like to carry debt and I have sold some of these properties to pay off the debt on others. Based on my experiences this is what I’ve learned about selecting the right property.

This particular blog is actually part of a series and I recommend you listen or read my other blogs on how to select the right market and how to select the right suburb.

Once you have narrowed it down to the right state , market, region and suburb for you then it is important to select the right property within that market.

Metro Market

This to me means Sydney, Brisbane and Melbourne. According to Core Logic, metro markets have increased over 100% more in a 20 year period than major regional markets surrounding those market.

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A Great Suburb

There are a few key performance indicators to consider when you are narrowing down your suburb. Good schools, preferably in the top third. This attracts people with high household incomes and international and interstate migration. Suburbs with train stations historically outperform those without them. I also prefer to buy either as close to the water or as close to the CBD as possible.

Pocket of the Suburb

It is important to identify the premium pockets and cheaper pocket of your suburb and avoid the cheaper pockets. Often if a property is cheap, it is cheap for a reason and what is cheap now, will likely be cheap in the future. I avoid main roads, properties backing onto commercial or industrial areas, cemeteries. These features can affect your capital growth by 1% every year, over a 15 year period this adds up.

The Street

I like to select street’s that have long term desirability. This includes; quiet streets, no or limited housing commission, streets that don’t back onto train lines and street’s that have some renovated or even newer houses on them.

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The House

When selecting the right house there are some major indicators that can affect the long term growth and future desirability of the home. I avoid houses with high risk of flooding and fire. I look for a quality home in great structural condition with no major building and pest issues. I prefer properties with large bedrooms (minimum 3 x 3), large open plan living areas and east or north facing back yards. It is important to check for easements on the property like man holes or sewer lines in case you want to build in the future.

I am an active investor and this can change the type of property I look for as well. If i’m building a brand new home I am very thoughtful with design of the home and colour selection. If I am buying an existing home I like to go for low maintenance, set and forget properties. I also like to look for opportunities. So if I am purchasing a project I look for a property with the potential to do a cosmetic renovation to release equity in the future or to add value. Many people can be put off by the ugly ducklings so sometimes there is an opportunity to pick these properties up below market value. I don’t look for headaches and major structural renovations but an internal and external cosmetic upgrade or maybe removing a wall to open the floor plan can increase the rentability and resale potential in the future.

To book a complimentary strategy session with the team at Pumped on Property click here. We would love to spend some time learning about where you are right now and where you’re looking to go in the future.  

Ben Everingham

About

Ben founded Pumped On Property after building a multi-million dollar property portfolio over a 5 year period. His mission is to show you how to replace your income through property investing so you can do what you love…full time.

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