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15

October

2015

Some simple clues where to buy your next Investment Property

As I have written previously, Brisbane is a great place to invest in that next investment property. (See below for the link to this article). This is because of the infrastructure that has been developing in the city over the past 5 years as well as the future projects that all tiers of government have already approved. Following on from this clue, it would be evident that one of the aspects to look for in a town or city that you plan to invest in is new infrastructure. Look for new developments such as mines or maybe a new stadium yet to get the go ahead, major freeway or rail upgrades, new harbour terminals, hospitals or universities. The list is endless so listen, read and research are the keys in keeping up to date with what's going on.

Another Clue to look out for can be changes to government legislation. Although all the talk at the moment is about negative gearing, remember the law changes not that long ago where SMSF's could now buy property. Capital gains tax as well as what can be claimed from your investment property can all change with legislation. The question to research is what is on the horizon where a savvy investor can capitalize.

Continuing on from this clue, it would make sense to look at other areas where government can have an influence on your investment dollar. Rezoning is the obvious one where agricultural land or scrub is suddenly rezoned into a residential area. Investors with an eye on this clue can seriously earn good money. Look at rezoning of inner city areas where high density housing is suddenly approved or suburbs where large blocks can be divided into smaller ones.

Another clue where certainly government plays a part is their housing policy. A case in question is where suburbs with many housing commission homes that have a low social standing in the community, and hence low prices, suddenly changes because the government sees this as an undesirable state. Instead they start selling these homes, to change the dynamic of the area or to save money by upkeep expenses. As a result, smart investors come in, redevelop and improve some homes and suddenly the suburb is transformed. The result is prices rise.

Lastly a big clue to always look out for is the current state of the economy. No one wants to buy an investment property at the top of the housing cycle as the long term growth of their property will be obviously lower than buying at the bottom end. In addition, one can also look at the changing face of our economy and research where our next lucrative industry is going to come from. There is no doubt markets will be changing in the short as well as long term as our resources based economy adjusts to the changing global situation. 

 

What binds all these clues together is change. Keeping an eye out for the next change in the market is nearly a necessity to becoming a good property investor. Whether it is government, demographics or changing landscapes, it pays to be prepared.

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