Mark Hay
'Selecting The Right Property'

This Weeks Episode of Home in WA

Contact:
Mark Hay

Email:
markh@markhay.com.au

Website:
http://www.markhay.com.au/

Phone:
(08) 9225 7000

Fax:
(08) 9225 7777

Address:
28/118 Royal Street
East Perth WA 60

In essence all property is a good investment provided it’s held for a long term, but some property is better than others. This is mainly dependent upon your own specific requirements, i.e. if you are a first time investor you would no doubt be looking at the highest cash flow possible from the property and would probably be limited in the value of the property also. However, as you become more financially mature and robust, then the types of property that you can invest in can have less leaning towards cash returns, and a greater focus on higher capital growth and blue sky potential. Likewise, dependent upon your income depreciation, consideration and tax advantages of negative gearing can also play a part in the type of property you are seeking.

For example a typical wealth creation plan can be, first time investors may secure smaller value properties with higher cash returns, where as investors seeking their third or fourth property would no doubt have the ability to pay more and possibly buy an older house on a triplex size block or something with some development/blue sky potential. Finally, as we are getting toward the end of our working life and we have a few properties under our belt, we would typically look at commercial properties yielding up to 3 times the cash return with far less headaches than the standard residential apartments and houses.

So ensure that wherever you are in your economic growth cycle, that you buy the property most suitable to your current needs, understanding that having a diverse portfolio that compliments each other, is a strong attribute.