I have to say, I completely understand the appeal in purchasing an investment property close to your home. For a lot of people, just knowing that you can drive past your property provides peace of mind –roof… check, windows.. check, brickwork… check, standing upright…check. You know the area, it’s done well for you and your family, and so naturally it seems like an ideal area to invest.
And maybe you’re lucky enough to be living in one of the top 10 property hot spots in Australia. In that case, you have my full permission to go bananas and sign on the dotted line for as many houses as you can reasonably afford.
Chances are though that you don’t live in or even close to one of these areas, and if you’re like the majority of the Australian population, you may not even know where these areas are! This is where it pays to do your research and source an investment that’s going to bring you the maximum amount of growth, whilst still maintaining your peace of mind.
Below are 3 factors that my clients have told me help them sleep well at night, despite the fact that their bed is almost 4,000kms away from their investment property:
1. Conducting a high level of research into the area and it’s surrounds before purchasing
2. Having in place an experienced, thorough and attentive property manager
3. Securing appropriate insurances sourced through a trusted insurance broker
If you’re buying an investment property for the purpose of realising capital gain, it’s worth thinking twice before taking a short cut in research and purchasing in an area that is familiar to you just because it feels ‘safe’.