Property selection is so much easier today than, say, ten or more years ago. We have internet search engines, online property portals, as well as other research sites to check vacancy rates and prior sales data and much more. However, instead of making things easier, some argue that the choice of properties is now overwhelming as you can search for and research thousands of properties around Australia at any one time.
Narrowing your search down
One decision that some investors make to refine their search is to rule out any property that is not new or nearly new. This definitely narrows down your search and there are sound reasons for this.
Should you ONLY focus on near-new or brand new property?
A popular view amongst new investors is that it would be best to buy old and renovate and thereby add instant equity. There is nothing wrong with this strategy if:
There are no real short-cuts to property selection. It will depend on your own circumstances and the level of research and due diligence that you are prepared to put in. Of course, you can seek professional help, which would be a better strategy than ruling property out ‘en masse’ because it doesn’t meet one of your selection criteria. I personally look at property as a financial product and therefore opt for a buy-new-and-hold strategy.