So, previously we outlined the pillars for successful property investing that I teach to all my clients.
To recap here’s what they are:
Creating a Personal Investment Strategy
Selecting the Right Property
It’s pretty much those three steps, and then you wash, rinse, and repeat.
Today, I want to particularly focus on point #2 – Selecting the Right Property
When it comes to selecting an investment property, the questions come in thick and fast:
“Do I buy a townhouse?”
“Do I buy an apartment?”
“Do I buy off the plan?”
“Do I buy a newly built house?”
“Do I buy an older house?”
“Do I buy in Melbourne?”
“Do I buy in Bendigo?”
“Do I buy in Adelaide?”
…And the questions will keep on flowing!!! And what do you think my answer is going to be?
“That depends upon your strategy! “Yes, that’s right everything depends upon your strategy!
Right, now that we have this clear, it will make selecting your investment property much easier. The first thing that we need to do, is research. We all know how to do research, right? We all use Google, Wikipedia, eBay…We’re researching all the time. Research is easy!
In property, the term “due diligence” is often used when referring to doing “research” – and that’s when things get a little hairy…
Most property investors – especially the amateur investors – are quite scared of doing their due diligence.
It is often perceived as being boring, hard, repetitive, and an absolute chore.
Now that’s a fair comment, because most amateur investors have NO IDEA what they are looking for, and most of them have no idea where to look either…
…No wonder they find it hard, boring and a chore!
Due diligence is the single most important skill you can have as a property investor.
If you don’t know what to look for, and don’t know where to source information, then it can literally mean you are investing blindly… not a good idea!
Said simply, due diligence can tell you whether you’re buying a goldmine, or burying your cash in a money graveyard.
The way I teach due diligence is completely different, and it can help you avoid the graveyards and snap up the goldmines.
We can show our clients how they can do thorough research using the most up to date data and have a clear understanding on whether they should buy… in approximately 30 minutes!
When the average person doing due diligence takes about 3-4 hours, imagine the advantage you have when you have everything you need to guide you, in around 30 minutes!
We are going to help you along by giving you a checklist that I and my clients always use.
It’s for Researching a Specific Suburb – click here to download.
Here’s a couple of websites you can use to get you started:
Property Value (Formerly RP Data): www.propertyvalue.com.au
Have a play with these, see how they work and I’ll come back to you with some more information shortly.
To Your Success