As a Brisbane Investment Property Advisor our role is to ensure a you understand all about investing in real estate and the Brisbane property market.
The same principles that a financial planner uses to asses a share or portfolio can be applied to real estate. By following the same principles an added level of security is built in to the final property selection process in the form of risk anaysis.
The process assess your needs and your risk rating which can then be included in the property selction criteria. An example of this would be a person who wishes to add value to a property and are therefore prepared to purchase a property that may be in need of work. This is a higher risk profile, however the rewards may be worh the investment.
On the other hand you may have a person who wants a property that can be rented out as is and needs little or no work to improve the property, a much lower risk option.
By conducting a “Needs Analysis” of you, we can then determine the type of risk profile to apply to your requirements which will lead us to a more suitable property that meets your needs.
The purpose of following a system like this is to reduce the risks that is associated with any form of investment. Whilst at the sane time refining the investment property criteria which results in you having the most suitable property to achieve your end requirements.
Step 1 is to Access Your Needs
Whenever I meet a client for the first time I apply financial planning practises to our initial meeting, something not many others do. The systems that have been implemented are designed to asses your current financial position, the level of risk you are comfortable with and what you want to achieve from the investment. At the same time we will be organising and assessment of your borrowing capacity which sets the budget for any purchase. This process is called a “Needs Analysis” and to be honest, anyone assisting people with real estate should have these basic skills.
Step 2 Where and What to Buy
The most successful and lowest risk option is to base your purchase in Distance to the Capital City. It is the oldest and most accurate measurement for property growth. You may find options where you can invest in a town that is looking promising and returns are strong but quite often these are sort term returns and carry a high level off risk. As close to the capital city is the best rule.
Step 3 is the Property Type
For the type of property you always have to consider the part of the investment that grows in value. It’s not the property itself, it’s the land and for that reason the majority of my purchases are houses. I will not look at units or townhouses unless we are constrained by budget. All capital cities face an over supply of both units and townhouses in the coming years and this will affect their value.