Its now time to research and analyse the property market based on the money made available from your lender.
Where to buy: every suburb has its strengths and weaknesses. Successful investors buy property based on a combination of short and long term strategy.
Price point: for the majority of investors the price is dictated by the amount of money made available by the lender. Using this capacity to buy in the most suitable suburb needs a certain amount of market knowledge, research and experience.
Net rental return: this is the amount of rent you will receive after deducting all the expenses. Management cost, insurance, water and other services, council rates and vacancy loss.
Capital growth: every suburb has short and long term growth results. These statistics must be analysed keeping in mind development and other factors that may raise or lower the capital growth.
Rental demand: this is extremely important as it is important to keep your investment always with a good tenant. An investment property which is not rented is costing you money every week.
Cash flow: before purchasing an investment every successful investor needs to know if the property will cost them money from their own pocket or will it cover its cost.