The Reserve Bank decision last week to leave interest rates at an historically low 2.5 per cent should provide further stimulus to the housing market in areas where job prospects are still stable. Investors keen to expand their portfolios are on the lookout for the most desirable suburbs that will provide a reasonable rental return in the short term, and prospects for capital gain in the long term.

So just how do first-time investors choose the best location to start their journey along the wealth creation path? After all, they are making a crucial decision and picking an underperforming area with their first property could be the start and finish of their investment dreams.

Basic Law of Supply and Demand Still Applies

Fortunately, it is not just a case of pot luck as there are indicators that have proven in the past to be reliable. The first is to look for areas where supply is limited but demand prospects are increasing and so is the population. Population movement data can be obtained from the ABS (Australian Bureau of Statistics) and other sources.

Next, is to do some field research and visit the suburbs under consideration. Look at the people walking or driving past. Do they look like they have discretional income, in other words, are they driving new cars, wearing fashionable clothes, have expensive accessories? Growth in any area is driven by people with money so this is what the novice investor should be looking for.

If all of this is making sense but seems too exhausting for you, we do similar research here at the Fountain Property Group. This research costs you nothing but as a client of ours, you are able to access our many years of experience in real estate. We work with our clients to ascertain their long-term wealth creation goals, and then recommend suitable properties for you to start your portfolio.

Self Managed Super Funds Active in Real Estate

We have helped many people to build an alternative income stream, including those looking to buy on behalf of a super fund. This is the latest group of investors in the market, and they are actively pursuing properties that will give them solid returns. We believe we can find the perfect self managed super fund property for every one of these investors.

Our formula for finding the right properties has been tried and tested over many years, and our team of experts in the finance, accounting and legal fields work together to create an investment package that is as individual as each of our clients.

Instead of trudging around unfamiliar suburbs clutching reams of statistics, just contact us and we can do it all for you.

 

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Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.