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Investment Property Selection
Every time a tenant moves, the investor’s cash flow suffers – perhaps in excess of $1,600 – due to loss of rent and management agent’s fees. In our view the ideal tenant is a young couple with children at primary school (because they might stay three or four years) so we encourage them to stay by providing them with what they aspire to – a brand new family home in an established family suburb with good amenities and schools. Other forms of property investment – and other locations - carry hidden problems that investors should best avoid. In particular, I might mention that we do not normally share with private clients investments that are • Existing housing stock • Inner city apartments (either high rise or low rise) • Serviced offices or serviced apartments • Student accommodation • Cluster housing and/or gated communities • Defense force housing • Locations distant from a capital city • Factories or commercial office space • Postcodes that the banks dislike • Locations dominated by one industry e.g. mining, tourism • Suburbs not adjacent to a major economic zone as each of the above “opportunities” carries hidden problems which slow the accumulation investment program, and consequently are not as attractive as a brand new stand-alone family home in an established suburb in a growth corridor adjacent to a major and diversified economic zone (i.e. where the jobs are). Article Directory: http://www.articledashboard.com Bernard Kelly www.retirelaughing.com |
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