As an investor, why did you choose the properties that you now own? What spoke to you, telling you that “this is the one – the one that will help me achieve financial freedom”?
Perhaps you’re not an active investor right now, but you’ve tossed the idea of real estate investment about in your head, wondering if it’s right for you. Wouldn’t it be easier if someone could just point you in the right direction?
At Positive Real Estate, we know precisely why we’re in the markets that we’re in, and we share that knowledge with our clients, each and every day – helping them learn to spot those areas that are well positioned for fantastic capital growth.
Not only do we share our knowledge, we have a proven record of consistently picking market winners – putting our clients into locations well before the “crowd” has discovered their existence.
Positive Real Estate has been active in many of the locations. Our method of analysing market factors puts us in those locations at the right time, before prices start climbing!
So how does Positive Real Estate find these profitable marketplaces? The answer may seem too simplistic to some, but our method simply works – research, research, research!
We work with the best economists, and purchase the best data. Our job is to absorb that data and break it down into easily understood concepts and strategies that we then use to educate you, our most valuable asset – putting the power of wealth creation into your hands.
To help you understand a market, we spread the information across 10 lessons, however for the sake of brevity, I’ll discuss just two.
What is the return of the suburb vs MY return?
Your goal as a property investor is to get a better rental return than the suburb average – that way you know you’re onto a good thing, and if there’s a market move, you can adjust your rents.
Gearing/ Tax Deductions/Cash Flow
Understanding the cash flow of the property by gearing and tax deductions is really important. As you go through the suburbs you’ll be looking at affordability vs rental return. This is a key driver when you’re looking at a top post code to invest in.
What is my Add Value Rental Strategy?
Positive Real Estate has been enjoying positive cash flow returns of percent in these locations, simply by looking outside the box. In certain markets, for example in a mining market, adding furniture is a well proven strategy to increasing rental returns.
What is the vacancy Rate of the area?
An area with a large vacancy rate, will certainly impact the yield potential of a property in that location. Shoot for a rate of 2 to 3 percent – lower than this number is amazing, and anything higher than this it’s important to consider what’s happening in the marketplace.
What is the availability of new land?
Supply and demand have a direct impact on a property’s returns so it’s vital to know what’s happening with the housing supply and population growth. Are you buying in an area which is tightly held while the population is growing, or have plans been initiated to release large blocks of new land into the market?
What major projects are happening in the area?
What residential development is going to occur now and somewhat into the future, and what kinds of releases are going to occur on the market?
What Major Retailers are Moving to the area?
This is a good – paramount question to be considering and something that we always look at. When big retailers expand to a certain area, there’s obviously people spending money.
What Commercial Office Space is being expanded?
Is commercial office space being expanded or is it contracting? This is an important factor that contributes greatly to the investment potential of an area. Follow the workforce and you can enjoy good returns, because employed individuals obviously need to live somewhere, right?
What Transport Plans are in the area?
No one likes to live, buy or rent in areas where they have no accessibility to major transport nodes. What are the transport plans in the area? This is a really important question to ask because it will mean the difference between people choosing an area or not, and values going up in an area or not.
If you’ve read this far then perhaps I’ve piqued your curiosity? To find out more about what makes these long-running investment hotspots such fantastic investment opportunities,.
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