1 CORRECT TIMING WHEN ENTERING THE MARKET
It is essential not to enter the market when demand has pushed comparative market pricing too high. The use of Property Timing Heatmaps© which measure the ‘Real Value’ as compared to comparative sales prices can ensure that you do not enter the market at the wrong time.
2 PROPERTY VALUATION
The use of a scientifically quantifiable valuation methodology such as PricingReality™ will safeguard the investor from overpaying for the property.
3 ENTRY PRICE RANGE
The purchase price of the investment property should be between 30% less than the city median price and up to a maximum of the median price of that city.
Engineering and building structural warranties, including a defects warranty and major fixture and fittings warranties need to be provided.
5 LAND VALUE
The land value component, being the major capital growth element of a real estate investment, is to be at a minimum of 20% of the purchase price.
Properties will be in higher demand the closer they are to key amenities.
Amenities generally include: public transport, shopping centres, social activities, infrastructure, and most importantly, schools, which best serve this purpose.
All of the above mentioned criteria need to be strictly fulfilled to adequately ensure that you are making a sound and successful investment.