As a buyers agent and property strategist, I am always asked one of two questions:
- What’s the best suburb to buy in now?
- What’s the best type of property to buy now?
My answer is always the same . . .
the answer to the question will depend on you. Despite what you might read in the media, there are opportunities in every one of the 8,200+ suburbs in Australia.
Avoiding the question
Many people just roll their eyes when I say this and sometimes accuse me of trying to avoid the question. But the truth is that the best suburb and the best property for you will depend on your situation – what is your budget? What do you want to do – renovate, develop? How quickly do you want to reach your goals? What is your goal? How passive or aggressive do you want to be . . .I could go on but hoping you get the picture.
We love to help our clients buy property they crave. But how can you buy property you crave if you don’t even know what you want? Or better still, need? There’s no point chasing the latest hot suburb if that suburb will stretch your budget to the max and leave you sleeping with one eye open each night.
After you have considered your budget and goals, whether you’re buying a home, investment or commercial property, a better question to ask yourself is ‘Which strategy will meet my needs’?
Once you’re considering this question, you’re well on your way to property success. This is because your approach needs to be specific to your personal requirements, and tailored to your individual situation as your knowledge, confidence and equity grows.
Yes. There is an alternative in that you can just copy what other people have done. Be careful if this is your strategy because you may be either missing out on better opportunities for yourself, or worse, blindly copying another’s approach without understanding the decision making involved could lead to disaster.
The two primary strategies property investors will usually discuss are capital growth or cash flow. While a useful way to start thinking about strategy, there are many more pathways available. In order to build a tailored strategy, we use the following groups.
- Capital growth – properties primed for capital growth due to identifiable influences.
- Multi-income – from our perspective, properties suiting this category often have two or more rental incomes.
- High yield – ideally yielding 7% or higher when considering rent as a proportion of purchase price and costs.
- Adding value – includes a range of activities from cosmetic, structural, through to development.
The beauty in the tailoring comes when you combine the above options to maximise your opportunities now and in the future.
In addition to your overarching strategy, there’s still more tailoring opportunities. This is when the real fun starts. You have the opportunity to choose your property type (house, unit, warehouse); purchase structure (your name, your company, or a trust); financing approach as well as other items such as how much involvement you would like – ie – paint the fence yourself or organise someone to do it.
Lead the market
Now you have the opportunity to choose the location. With your strategy in focus, you will be able to choose locations that match your strategy, rather than letting the market lead you astray.
Often it isn’t easy designing your own strategy. There are many components to consider and the market is constantly moving, providing both opportunities and warning signals. So the question to ask me is ‘what strategy is the best for me’. I would be happy to answer this one.
Buy smarter = limitless ways to build lifetime income
Crave Property Advisory is a unique property strategy and buyers agent service. As the only independent and unbiased advisory that can help you use any property strategy Australia-wide, Crave’s services extend to home, investment and commercial property. A highly client focused organization, Crave developed the Modular Investing System (MI System) to provide clients with the ability to use a tailored mix of strategies and efficiently build profitable portfolios that create lifetime income.
Debra Beck-Mewing is the CEO of Crave Property Advisory, and has more than 20 years’ experience in property investing, Australia-wide. She has used a range of strategies to build her property portfolio including renovating, granny flats, sub-division and development. Debra is skilled in identifying development opportunities, and sourcing properties that have multiple uses and multiple exit strategies. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business.
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Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.