You are now in the position to look for a unit or house but what determines whether a property would be a good cash flow property or a capital growth property.
Below are some of the key points you should be looking for in your search.
Locating Cash flow properties
- Look in high yielding suburbs
- Buying properties 20 – 40% below the median price for the suburb.
- Buying in regional areas or targeting student accommodation.
- Renovating and adding value to increase rents.
- Managing interest rates and fixing when we think the current interest rate is at the bottom of its cycle.
Locating capital growth properties
- Strong economic growth and low levels of development
- Close to schools, shops and public transport
- Close to a capital city
- Older properties rather than new ones
- Properties that have rental appeal
- Purchase in countries where there has been a history of growth