The best places for property investment
Friday, 13 September 2024
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Friday, 13 September 2024
When it comes to property investment, the most common question is, "Where's the best place to buy?" Many expect a quick list of the hottest cities, but the secret lies beyond the latest trends. Successful property investment hinges on understanding key growth drivers and identifying opportunities others overlook. This approach outshines any fleeting "top 10" list.
Why does it matter? Think about the consequences of owning a rental in a dwindling town—it's hardly an appealing prospect. A thriving area with steady population growth is crucial, indicating a vibrant community that attracts people to live, work, and raise families.
Pro tip: Dive into local government data, census information, and news on upcoming developments to gauge the potential of your target area.
Why does it matter? A robust job market isn't just good for the local economy; it stabilizes your rental income. A mix of industries ensures that tenants have employment options, reducing your risk during economic downturns.
What to look for: Areas with a diverse range of employers, from tech startups to healthcare giants. This diversity buffers against sector-specific downturns.
Pro tip: Research major local employers and upcoming expansions—these are indicators of potential tenant demand.
Why does it matter? Land is a key, often overlooked asset. Exciting changes like the new granny flat regulations set for 2025, which will simplify adding 60 sqm dwellings on existing properties, highlight the benefits of owning more land.
What to look for: Properties with ample land offer development opportunities, even beyond new regulations.
Pro tip: Stay informed about local zoning laws and upcoming changes to capitalize on your investment.
Why does it matter? A visually appealing property that doesn't generate adequate cash flow can quickly become a financial burden.
What to look for: Focus on properties in areas with a shortage of available rentals but high demand.
Pro tip: Consider properties that can be divided into multiple units to increase rental income, like multi-family homes or properties suitable for conversion.
Why does it matter? Zoning can be your greatest ally or your biggest hurdle. Understanding and leveraging favorable zoning conditions can significantly enhance the value of your investment.
What to look for: Look for areas where zoning laws support diverse development opportunities.
Pro tip: Consulting with urban planners or zoning experts can provide crucial insights into the potential development and profitability of your investment.
Why does it matter? New developments indicate an area attracting investments and undergoing growth, making it a prime spot for property investment.
What to look for: Signs of new investment like infrastructure projects, new housing developments, and enhanced community amenities.
Pro tip: Visit the area to see these developments firsthand, helping you gauge the neighborhood's potential and discover opportunities that might be overlooked by others.
Selecting the best place to invest in property involves more than pinpointing a location on a map; it's about understanding the dynamics that foster a thriving investment environment. By focusing on key indicators like population growth, job market diversity, land potential, cash flow, zoning, and ongoing development, you can make strategic choices that pave the way for long-term success. Remember, investing in property is a journey—take your time to research, plan, and strategically execute your investments. With these insights, you're well on your way to building a profitable and sustainable property portfolio.
Book a complimentary 15-minute consultation with Ilse Wolfe. As a seasoned expert in real estate, Ilse brings knowledge and personalised strategies to help you confidently navigate the market. Whether you're buying, selling, or simply exploring your options, this free session is your gateway to invaluable insights and tailored advice.
About the author: Founder of Wolfe Property Coaching in New Zealand, Ilse Wolfe's story is one of incredible perseverance, smart strategies, and unwavering determination. Today, Ilse boasts a $20 million portfolio and a wealth of knowledge gained from her experiences. For ongoing tips and insights, tune into Rinse and Repeat. This monthly podcast features global real estate experts and delivers short, exciting episodes aimed at transforming the way Kiwi investors approach property. Contact Ilse on 021 848 280 or visit: www.wolfeproperty.co.nz
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