How do you find a good property to purchase? Most property investors find their own ways to identify a good investment. A good investment is an asset with the right price, surrounded by different socio-economic drivers that fuel both cash flow and yield.
While many people would say that the number of properties in a portfolio is a gauge for an investor’s success, it is far more pertinent to focus on certain characteristics of an asset in order to actually achieve their long-term goals.
A good checklist is:
Make sure to pay the right price
Before purchasing a property make sure of whether or not you are paying the right price. Regardless of the bank’s evaluation of the property take time to assess it for yourself with the help of property professionals.
Do your own evaluation first just to figure out where it’s at by speaking to different agents and everything… And then if your still not sure go and get the evaluation independently.
Buy in the right area
Like many property investors, the location of an asset plays a big role in the decision-making.
The right area is surrounded by enough infrastructure and places, communicable to the job centre, hospitals, universities and all and are in areas that are poised for economic growth in the coming years.
Identify the right ‘supply and demand’ rate
An area’s population is telling of the rate of supply and demand for dwellings, hence, a growing population is always a good news for a property investor.
If you can hold onto a block of land, which is where there’s not enough supply, then you can truly do well of. There’s not a lot that can go wrong in that case… Down the line, as long as the population keeps growing, it’s going to do okay.”
The ultimate aim should be to create a flow of passive income consistent enough—around $150,000 annually—to retire or, at the very least, give the freedom to work whenever he likes.
You need to be understanding that the number of property is largely irrelevant because it’s about the formats of these properties, and how they contribute to your goals and aspirations, and what you hope to do through property investment.