Finding the right property is the biggest challenge facing property investors today, new research has revealed.
According to Mortgage Choice’s 2014 First Time Investor Survey, 50.6% of investors who purchased their first investment property within the last two years said finding the right property was the hardest part of investing.
These results are surprising, especially given the current market conditions.
With property values climbing considerably over the last 12 months, we expected to see more first time investors saying their biggest challenge was saving a deposit.
Instead, just 15.3% said “saving a deposit” was the biggest challenge they faced when investing in property, while a further 15.5% said “choosing the right investment strategy” for their needs was the toughest aspect of property investment. It is clear that Australians are quite particular about what they want from their investment property.
What is the 'right' investment property?
When purchasing an investment property, investors look for a dwelling that is not only located in the right suburb and is close to essential amenities, but also a property that is located in an area that has proven high tenant demand. It seems location is everything. A property that is located in a good suburb and near the necessary amenities including cafes, restaurants and local transport, is likely to attract more tenants, which can help to increase the rental income generated by the property.
More than 60% of recent investors admitted to purchasing either a small house (1 to 3 bedrooms) or a small unit (1 or 2 bedrooms) because they know these types of properties are in the highest demand.
Despite the fact that the property market is running hot at the moment and there is a lot of competition out there from other buyers, it seems first time investors are happy to bide their time and wait until they find the perfect property.
If you would like more information on property investment, call us on 07 3808 1070 or visit our website www.mortgagechoice.com.au/logan2.