With Anna Ellis
Are you looking to enter the investment game or expand your existing portfolio? This month, we spoke to Anna Ellis, our expert in Brisbane investment properties, about the key factors to consider when making an investment purchase. Read on as she shares her best advice:
“Before investing in property, starting with the end in mind is crucial. This means having a clear goal of what you want to achieve and when. One of my favourite goals that a client shared with me was to build a portfolio of 3-4 properties by the Brisbane Olympics in 2032, which they could then use to purchase their dream home in 10 years. Everyone’s goals will differ, but having a brief to refer to anytime can help us as Buyer’s Agents produce the best result.”
“Everyone has a different reason for investing in property. Some want to pass it on to their children, others to have the cash flow for retirement or build equity. I invest in property because it grows more than I can save yearly, and it’s a safe brick-and-mortar investment that has traditionally doubled in value every ten to fifteen years. Plus, if I didn’t invest, I would spend everything I earn!”
“When choosing where to invest, buyers need to consider who are the target markets? For instance, what is the profile of people renting in the area, and will they take care of the property? How stable are their jobs to ensure timely rent payments? It’s also vital to consider what type of demand there will be from buyers. If your property appeals to a greater number of segments, such as young families, working professionals, or downsizes, it will have more appeal, reducing its risk and increasing demand. These factors ultimately dictate and help you choose the suburb for your next investment. Affordability is another factor to consider. Affluent inner-city and family-friendly suburbs tend to outperform the market average and are less prone to market fluctuations. However, these come at a premium cost.”
“No matter what your budget, we can put together a strategy to get you into the best suburb you afford.”
“First-time investors, listen up! You don’t need to save 20% on a deposit. A 10% deposit plus stamp duty is usually enough to get started. Often, first-time investors try to save the full 20%, but as the market continues to grow, their deposit needs to be more. A 10% deposit can also get you into a better property than a 20% deposit into a cheaper investment. Regardless of your investor profile, my best advice is to get a good accountant and the right structures in place.”