1.They liked the house so much; they fell in love with it and therefore felt they had to buy it.
2.The property is “just around the corner” so they will be able to keep an eye on it.
Now whilst this is a very noble sentiment, it really is short sighted and not an effective way of selecting the type of investment property or the location.
Remember this is an investment and as such the property needs to meet all the criteria required to give you the best possible chance for potential high capital growth, good rental return and a location that is booming.
Does it matter if you wouldn’t like to live in the house yourself? Does it matter if you don’t like the colour of the exterior? Does it matter if you don’t like the trees in the backyard?
NO OF COURSE NOT!
Does it matter that you can’t drive past the property every day? Does it matter that you wouldn’t necessarily like to live in this area? Does it matter that you have never seen the property firsthand?
Once again…….NO, OF COURSE NOT!
As long as you are confident in the research undertaken of the area, the study of the demographics, future population movements, infrastructure, potential buildings & business districts, the rental demand and the projected capital growth etc. …..then it doesn’t matter if you are investing outside your local area and it definitely doesn’t matter whether you like the house or not. Remember it’s the potential of the investment and the area that counts.
As long as you have the property professionally managed by a property manager it shouldn’t matter where you invest. Remember all you want is;
1- Great Tenants
2- Low Vacancy Rates
3- Potential for high capital growth
4- Great Depreciation
5- In an area that is growing with population
6- Good rental returns
7- Low maintenance
Property Friends is a specialist Property Investment Advocacy that has been operating for the last 13 years on the basis of 3 principles: Trust, Community & Progress. www.propertyfriends.com.au (03) 9758 5331