{"id":3111,"date":"2017-04-07T09:01:02","date_gmt":"2017-04-07T09:01:02","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/?p=3111"},"modified":"2017-04-07T09:01:02","modified_gmt":"2017-04-07T09:01:02","slug":"investment-property-buy","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/investment-property-buy\/","title":{"rendered":"Which investment property should you buy?"},"content":{"rendered":"

 <\/p>\n

\n
\n

\"House<\/p>\n

House hunting for the right investment property can be challenging.<\/p>\n<\/div>\n

So you\u2019ve pulled together the money to buy an investment property.<\/strong><\/p>\n

Now the fun really begins as you start the search for the right investment to add to or kick off your portfolio.<\/p>\n

But which investment properties should you consider in order to give you the best possible return?<\/p>\n

AllianceCorp Property Experts managing director Jason Paetow says different investment properties suit different people, depending on their financial position and goals.<\/p>\n

City or regional?<\/h2>\n

Paetow says most investors\u2019 financial strategy is to set themselves up for a comfortable retirement, which can make investing in inner-city Sydney and Melbourne problematic.<\/p>\n

He says the sheer cost of the properties in these areas can \u201cmax out an investor\u2019s borrowing capacity and impede their ability to purchase the number of properties required to achieve their goals\u201d.<\/p>\n

\n

\"Balmain\"<\/p>\n

Inner city properties are always in high demand.<\/p>\n<\/div>\n

While properties close to the city do tend to see higher growth than regional properties, many investors are now priced out of city markets but are still able to find good opportunities further afield.<\/p>\n

\u201cAs for regional areas, we have witnessed some amazing opportunities for clients in the last couple of years.<\/p>\n

\u201cA regional area that performs well generally has steady population growth, employment opportunities, lifestyle features (such as a tree-change, sea-change community) and infrastructure development works, amongst other things.<\/p>\n

\u201cThis contributes to a demand for housing<\/a> so investors can pick up a new house and land package at a much more reasonable price than an inner-city property and can fetch higher rental yields, which can even see the investment being cash flow positive,\u201d Paetow says.<\/p>\n

House or unit?<\/h2>\n

Again, there\u2019s a place for both houses<\/a> and units in a property investment portfolio, Paetow says, depending on your circumstances.<\/p>\n

\u201cHouses in growing areas tend to experience higher capital growth than units or townhouses due to the land content.<\/p>\n

\u201cThe downside of this is that the rental yields compared to the value of the property are often lower than that of a unit.<\/p>\n

\u201cAlso, a house versus a unit in the same location is generally going to be more expensive, which means it will impact the investor\u2019s ability to keep borrowing to acquire further investments,\u201d he says.<\/p>\n

\n

\"Apartments\"<\/p>\n

It\u2019s important to get some advice before venturing into the investment property market.<\/p>\n<\/div>\n

Paetow also warns investors to \u201ctread carefully\u201d when considering buying a new apartment near capital cities due to oversupply issues, particularly in Melbourne.<\/p>\n

New or established?<\/h2>\n

Most advice around property purchasing indicates older houses or units have better potential for capital growth, and Paetow agrees, however he says it\u2019s a case of horses for courses.<\/p>\n

Established homes are generally more likely to have their own land, which can provide huge boosts in value. They also have better scope for negotiation on price, and further value can be added through renovation, subdivision or development.<\/p>\n

But Paetow says properties that are very old will prevent you from claiming many depreciation benefits, and will attract lower rental yields and higher maintenance costs.<\/p>\n

\n

\"Sold<\/p>\n

Time to celebrate \u2026 buying an investment property is a major achievement.<\/p>\n<\/div>\n

New properties, on the other hand, offer<\/a> much higher depreciation and much lower stamp duty if bought off-the-plan.<\/p>\n

\u201cDepreciation can be claimed at a much higher rate than with an older property. This can help with balancing the cash flows of a property and in some cases, making the property cash flow positive,\u201d Paetow says.<\/p>\n

But he cautions investors to ensure they thoroughly research their potential investments, particularly if the property is in a newer area with limited data on sales data and historical growth.<\/p>\n

 <\/p>\n<\/div>\n

[ad_2]<\/p>\n

Realestate.com.au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

  House hunting for the right investment property can be challenging. So you\u2019ve pulled together the … Which investment property should you buy?<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":3112,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[981,4751,1403,15239,1399,12908,543,127,617,489,344,383,3058,41,1152,140,818,678],"class_list":["post-3111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-a-house","tag-amazing","tag-buy","tag-chase","tag-development","tag-home","tag-home-buying-guide","tag-homes","tag-house","tag-houses","tag-housing","tag-investment-property","tag-location","tag-property","tag-property-investment","tag-property-market","tag-real","tag-rental"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/04\/collingwood-body-1024x768.jpg?fit=1024%2C768&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":7399,"url":"https:\/\/amazingproperty.com.ng\/blog\/property-investment-costs-by-state\/","url_meta":{"origin":3111,"position":0},"title":"Property investment costs by state","author":"Amazing Property","date":"December 7, 2017","format":false,"excerpt":"One of the primary attractions of purchasing a residential property investment is that you\u2019re not limited to locations you actually want to live in. You can buy a house or unit based purely on the property\u2019s prospects as an investment, even if it\u2019s hours away in another region, or a\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"131 Raymond Terrace Road East Maitland 800x600.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/131-Raymond-Terrace-Road-East-Maitland_800x600.jpg?fit=800%2C600&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/131-Raymond-Terrace-Road-East-Maitland_800x600.jpg?fit=800%2C600&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/131-Raymond-Terrace-Road-East-Maitland_800x600.jpg?fit=800%2C600&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/131-Raymond-Terrace-Road-East-Maitland_800x600.jpg?fit=800%2C600&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":4853,"url":"https:\/\/amazingproperty.com.ng\/blog\/experts-unfold-potentials-in-lekki-property-market\/","url_meta":{"origin":3111,"position":1},"title":"Experts unfold potentials in Lekki property market","author":"Amazing Property","date":"June 6, 2017","format":false,"excerpt":"[ad_1] By Kingsley Adegboye THE duo of Messrs Chudi Kalu, Founder, Africa\u2019s Property Investment Group AFPING, and Alex Adefarasin, Managing Director and Chief Executive Officer, Arkbridge Integrated Limited, a Lagos-based real estate development firm, at the weekend disclosed the massive opportunities that abound in the Ibeju-Lekki corridor, Lagos, in terms\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Kaycee-pix.png?fit=412%2C252&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":22717,"url":"https:\/\/amazingproperty.com.ng\/blog\/7-real-estate-investment-tips-for-beginners\/","url_meta":{"origin":3111,"position":2},"title":"7 Real Estate Investment Tips For Beginners","author":"Amazing Property","date":"December 2, 2021","format":false,"excerpt":"Real estate investment tips for beginners, Those who have used this\u00a0 simple tips over the long term have succeeded in real estate business . \u00a0 Just because real estate prices seem to have hit a temporary ceiling in many countries around the world, that doesn\u2019t mean that profits from property\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/investment\/"},"img":{"alt_text":"Real Estate Investment Tips For Beginners","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2016\/05\/Real-Estate-Investors.jpg?fit=413%2C291&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2791,"url":"https:\/\/amazingproperty.com.ng\/blog\/invest-in-property-in-thailand\/","url_meta":{"origin":3111,"position":3},"title":"Invest in Property in Thailand","author":"Amazing Property","date":"March 31, 2022","format":false,"excerpt":"\u00a0 Invest in Property in Thailand Thailand is a beautiful place. From idyllic beaches to the infamous Full-Moon parties on Koh Phangan, Thailand has a lot to offer tourists. It\u2019s also a great place to live if you enjoy the digital nomad lifestyle. But, is Thailand a good investment opportunity\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/investment\/"},"img":{"alt_text":"Invest in Property in Thailand","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/03\/Invest-in-Property-in-Thailand.jpg?fit=960%2C636&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/03\/Invest-in-Property-in-Thailand.jpg?fit=960%2C636&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/03\/Invest-in-Property-in-Thailand.jpg?fit=960%2C636&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/03\/Invest-in-Property-in-Thailand.jpg?fit=960%2C636&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":5548,"url":"https:\/\/amazingproperty.com.ng\/blog\/what-makes-for-an-investment-grade-property\/","url_meta":{"origin":3111,"position":4},"title":"What makes for an investment grade property?","author":"Amazing Property","date":"August 1, 2017","format":false,"excerpt":"Property investment is a long-term game and it\u2019s really a combination of time IN the market as well as TIMING the market for the savvy investor. As owner-occupiers are the biggest percentage of buyers in the housing market, they create much of the demand and therefore drive capital growth. Importantly,\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/08\/south_yarra_cafe_article-1024x768.jpg?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/08\/south_yarra_cafe_article-1024x768.jpg?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/08\/south_yarra_cafe_article-1024x768.jpg?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/08\/south_yarra_cafe_article-1024x768.jpg?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":7884,"url":"https:\/\/amazingproperty.com.ng\/blog\/developers-unfold-potentials-in-lekki-property-market\/","url_meta":{"origin":3111,"position":5},"title":"Developers unfold potentials in Lekki property market","author":"Amazing Property","date":"January 23, 2018","format":false,"excerpt":"By\u00a0 Kingsley Adegboye THE duo of Messrs Chudi Kalu, Founder, Africa\u2019s Property Investment Group, AFPING, and Alex Adefarasin, Managing Director and Chief Executive Officer, Arkbridge Integrated Limited, a Lagos-based real estate development firm, at the weekend disclosed the massive opportunities that abound in the Ibeju-Lekki corridor, Lagos, in terms of\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Estate 010.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/11\/estate-010.jpg?fit=412%2C276&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/3111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=3111"}],"version-history":[{"count":0,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/3111\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media\/3112"}],"wp:attachment":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=3111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=3111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=3111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}